House asking prices fall as sellers become more reasonable

House asking prices fall by 2.2% as sellers adopt a more realistic approach to property market conditions.

The latest Rightmove House Price Index shows that the average asking price has fallen by 2.2%.  It seems that sellers are adopting a more realistic market view as they seek a buyer for their property.

Even though asking prices are dwindling, general sentiment about the housing market is strengthening as 75% of home movers do not expect further falls in house prices over the next twelve months.

RightMove recorded a record month in the number of searches carried out on its web site.  The property portal attributes this to an increase in the number of marginal buyers who search hard for property that matches their restricted earnings and credit worthiness.

Mortgages are still difficult to obtain for people who cannot provide large deposits and whom may have some credit impairment.

As Miles Shipside, commercial director of Rightmove explains: “After several months of activity and prices revving upwards from last winter’s low point, both will start to hit the limiter without more mortgage finance. In spite of pent up demand, the market and pricing is boxed in by restrictive lending criteria put in place to ration mortgages given the lack of funds available to lenders”

Until there is a further easing of credit availability, house prices will continue to be constrained in the months ahead.  As the RightMove survey shows, those sellers who price their houses realistically are the most likely to find buyers.