It appears house sellers are being optimistic with the Spring season.  Usually Spring gives a seasonal boost to house sales and asking prices for houses in England and Wales increased by 0.1 per cent for the year perhaps reflecting the trend.  This data is from the April Housing Price Index released from the property Web site Rightmove.  It is likely that sellers are being optimistic, and perhaps a bit more than they should with the data also showing that agents saw the largest monthly increase in unsold properties in almost four years.

Supply is definitely out numbering demand in the housing market.  Buyers have been in the low numbers and it is being blamed on many factors.  One is the tightening on lending.  Buyers, especially first time home buyers have found it difficult to secure lending.  Another reason is the lack of confidence in the economy with hopeful buyers restraining from taking on a major debt in the face of rising inflation and public spending cuts.  The warnings of an impending rate hike in the interest rate is also a factor in keeping buyers away.

Rightmove reported the average asking price of a property went to £235,822 from £231,790 which is a 1.7 per cent increase in April.  The previous month had reflected an increase of 0.8 per cent.  This shows that sellers asking prices may be out of line with what the buying market can bare with so much property available.  Estate agents reported the largest jump in unsold property listings since May 2007.  The number of properties per branch rose to 74 from 70 on average. 

Miles Shipside, Director of Rightmove, responded:  "While stock levels normally increase during the first half of the year, this is a larger increase than normal.  Those who are serious about selling should look to price more keenly in the Spring selling season.

"While most of the country struggles to sell or raise deposits to buy, demand from cash-rich buyers in London has meant that sellers there can ask record prices.

"This is driven by London's international status, its preponderance of wealthier buyers, and a shortage of available land and properties."