Monday, Jun 22, 2009
June prices -0.4%mOm, -5.5%YoY
Rightmove [pdf]: New sellers hesitate as first-time buyers struggle
Was leaked on Friday by Firstrung, but here's the official confirmation. Asking prices fall slightly, after four consecutive months of rises. The average asking price on Rightmove is now £226,436 - Shipside says this figure is distorted by the low availability of mortgages- the main activity is in the high end of the market where the super-rich people don't require mortgages.
Posted by little professor @ 08:31 AM (565 views) Add Comment
5 Comments
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1. doomwatch said...
Comparing the average RM asking price, to average SALE price (land registry), it would appear (assuming RM average asking prices, are
reflective of the entire market) that asking prices are been dropped by an average of approx 69-70% to acheive a sale.
For any journos/hacks reading this (we know you do), that's GOOD news.
2. Neil B said...
Shipside says this figure is distorted by the low availability of mortgages- the main activity is in the high end of the market where the super-rich people don't require mortgages.
Shouldn't this read 'The super rich people that don't require mortgages are distorting the figures' ?
3. uncle tom said...
Rightmove's data used to be a useful early indicator of market direction, but over the last year has been corrupted by a varying and atypical mix of property on the market, with vendors asking what they need (to leave them with sufficient equity to form a deposit on their next home) rather than what the market is willing to pay.
Still, this news will help to bring the current false dawn to an end, and if an accurate reflection; confirms my belief that the false dawn is already a spent force.
4. growler said...
This is very much expected and Shipside is right: it's only the very wealthy that are moving - or those with very low LTVs. Not the stuff of any market recovery - as he knows. For askign prices to fall at all in May is very odd - that is I think very tellign of what is to come.
But as I've said before, once we get Wimbledon Tennis, the whole lot will plunge as activity falls stills further. Estate Agents know this is when the phones stop ringing. Expect a big drop coming up next time in this and other indices.
5. Dcb Death said...
I witnessed this median market behaviour in silicon valley USA about a year ago, with the only activity being higher end properties moving, pumping, and then stagnation, followed by a reality-check and then some proper pricing once denial had been replaced by the onset of fear.