Asking prices mellow for house sellers
Published On 19 February 2007
House sellers' asking prices have mellowed in February, according to figures from Rightmove.Asking prices rose in February by just 0.9 per cent, the lowest rise for five years.
It is thought that this mellowing of the market is the result of the Bank of England's three quick fire interest rate hikes since August 2007.
Overall house price growth dropped two percentage points, from 13.5 per cent in January to 11.5 per cent in February.
Rightmove commercial director Miles Shipside said: "February price rises are normally two to three times higher than we have measured this month."
He added: "With three interest rate rises in the last six months and the looming threat of another, it looks like we have finally reached the point where the market is highly interest rate sensitive."
Correspondingly Mr Shipside said that the direction of asking prices was in the balance and would depend on the further interest rate decisions this year of the Bank of England's monetary policy committee.
The rate currently stands at 5.25 per cent.
