Can Vendors Justify Asking Prices?

Rightmove doesn’t appear to have read the script when it comes to the market – while many agents are reporting gentle price falls this autumn, the portal’s asking price index shows an increase in asking prices of 2.6 per cent over the past month.
This is the lowest rise at this time of year since 2008 but the portal warns that sellers may still find that their asking prices are too optimistic in parts of the country where the supply exceeds buyer demand.

New seller numbers are up by an average of 10 per cent compared to October 2013, giving buyers in some locations more fresh choice and negotiating power according to Rightmove.

Yet the average price of property coming to market increased in every region this month.

One reason for this is that there is still less property on the market due to the increased number of transactions, though with demand showing some signs of slowing in pace, and with buyer numbers traditionally more subdued during the winter, the portal suggests this price increase may prove to be too optimistic.

Rightmove’s national ‘time to sell’ index is up from 65.8 days to 67.8 days this month.

There appear to be few signs of a slowing market in the south east, which is now the strongest performing region in the country over the last 12 months. New seller asking prices in the south east are 10 per cent higher than a year ago, and higher than London’s current annual rate of 9.6 per cent.

“Demand has been on the up in most locations so far this year, but agents in many parts of the country report a slowing in that pace with an initial post-summer pick-up failing to gain momentum” says Rightmove’s Miles Shipside.

“There are more sellers giving it a go with newly-marketed listings on the up, and it seems that they recognise there is a window to sell now. However, to sell their property more quickly they should make it the most attractive in terms of price and preferably presentation if they are serious about selling within weeks rather than months.”