Record fall in asking prices
Monday, 20 Oct 2008 08:21
Rightmove reports largest ever fall in asking prices
Rightmove has recorded the largest fall in asking prices yet and has predicted the housing market will never be the same again.
New sellers are now marketing their homes at 4.9 per cent less than 12 months ago, the largest year-on-year fall ever recorded by property marketing site Rightmove.
There was still an autumn bounce in asking prices of one per cent in October compared to last month, as old habits die hard, Rightmove said, but the overall trend is downward.
The firm also reported that for the first time, all regions of the country slipped into negative territory compared to a year ago.
Miles Shipside, commercial director of Rightmove, said: "Any potential buyer will drive a hard bargain, so the temptation for sellers to price up and negotiate later may seem like a good idea.
"These are not the tactics of sellers in real financial hardship, and it would appear that the economic downturn has yet to become an everyday reality to most people.
"This is about to change as, unfortunately it looks like rising unemployment and an increasing pipeline of repossessions will drastically alter the complexion of the market in 2009."
Average unsold stock per estate agent decreased over the month from 78 to 76 and although these levels are still at historic highs, sellers are not feeling any urgency to find a buyer, Rightmove said.
Rising unemployment may lead to a surge in forced sales, driving prices down further, Rightmove said.
Mr Shipside concluded: "For those who have been active in the housing market in the last 20 years, or were now hoping to get on the housing ladder following recent price falls, the rules have changed for good.
"When we look back on these turbulent times, I suspect we will not only realise that we came closer to the brink than most imagine, but we will also clearly recognise it as the end of the long period of growth in owner occupation."