Along with the Olympic Games, consumer confidence could do little from keeping housing prices in the UK from dropping again in August.  According to Rightmove, the games provided continued distraction for potential buyers to put off buying as the average asking prices fell.  In England and Wales the average price dropped almost 2.5% to 236,260 pounds.  This drop is in the wake of a disappointing July in which prices fell more than1.5%.  The capital city of London even experienced a house price slide of 1.2%.

George Buckley, Deutsche Bank AG economist in London believes another round of stimulus could be on tap in the near future, saying: “We’ve got weak confidence and the unemployment numbers may get worse before they get any better.”

Buckley continued: “We’re looking at either a flat or a slight contraction in underlying growth so, however you cut these numbers, you’re looking at a very weak, poor recovery. You can’t rule out more stimulus from the Bank of England, especially with uncertainty over events in Europe.”

Seasonal trends have remained consistent over the last ten years giving little reason to believe a sharp rise in selling will occur anytime soon.  Eight out of the last ten seasons have resulted in drops in house prices in August averaging more than 1.0%, according to Rightmove.

Miles Shipside of Rightmove commented on continued distractions to house sales in the near future, saying: “With buyers distracted by sport and the economic backdrop, sellers will now have to compete hard to win their attention in the upcoming autumn selling season.”

He added: “While the main Olympic distractions have passed, many other market challenges remain for sellers to overcome.”