Rightmove House Price Index Shows First Decline in House Prices for This Year
Homeowners wanting to sell have decided to be more aggressive to make a deal. According to recent data, July was the first month in 2011 that showed homeowners were dropping their asking prices. This came along with data that showed the average number of houses unsold per estate agent rose to unprecedented level according to data in the House Price Index Report from Rightmove.
According to the report house prices fell an average of 1.6 per cent for the month of July after a slight gain of 0.6 per cent in June. This is also the first fall after six consecutive months of rising prices according to Rightmove. Overall, the 1.6 per cent decline equated to a fall of £3,797 to an average asking price of £236,597.
Miles Shipside, director of Rightmove, said, "Summer sellers are more nervous about their selling prospects than the early birds who asked ever higher prices during the first six months of this year.
"While property has a good long-term record as a hedge against inflation, in the short term property prices have become significantly cheaper in real terms as the cost of living has gone up, while the cost of housing has stood still or gone backwards."
It is hoped that the lower asking prices and the still cheap borrowing costs will bring buyers back into the market. As prices have declined, so have equity levels for homeowners. This has made it difficult for not only remortgage opportunities but also for those wanting to sell a starter home and move up the ladder.