News
Seventy per cent of properties put on the market so far this year are still for sale
July 2011
Seventy per cent of properties put on the market so far this year are still for sale, Rightmove reported this morning.
The number of unsold homes per estate agency branch stands at 78, the highest Rightmove has ever recorded in July.
Rightmove said the figure is "a sobering reflection of current marketing conditions".
It said the high number is an indication that many equity-poor sellers are unwilling or unable to cut their prices – although they may have to, as Rightmove also reported that, for the first time this year, asking prices have been dropped by sellers new to the market.
The fall is to the tune of 1.6%, equating to an average of £3,797, which goes some way to eating into the gain of 8.1% over the first half of the year.
Even in London, asking prices have fallen for properties new to the market, down by 1.4% to an average of £432,641.
The number of new sellers also fell, down by 12% on this time a year ago, with many owners unable to raise the deposit to fund their next move.
The asking price on Rightmove now stands at £236,597. The site said that the fall in asking prices this month is the highest drop in three years, since 1.8% in 2008.
But even with a fall in asking prices, a huge gulf persists between Rightmove's asking prices and those of around £163,000 being quoted by Halifax, Nationwide and the Land Registry.
Rightmove director Miles Shipside said that with seven out of ten properties marketed this year still unsold, sellers in the second half of this year would need to do something different to catch elusive buyers.
He said: "Many equity-poor aspiring sellers will be trapped in their current homes, either unable to come to market or stuck on the market and unable to reduce to a price that will attract buyer interest.
"Those that are equity-rich have an opportunity to increase their chances of success by launching to the market at a price below their over-priced and stale competition." A second survey by Rightmove, due out next week, is set to show a fall in housing market sentiment among consumers.
For further information, please contact Mr Michael Poole, Michael Poole Property Consultants, on 01642 254222 or email: mike.poole@michaelpoole.co.uk
