Asking prices fall 1.7% as properties for sale drops to record low
Asking prices fall as number of properties for sale drops to record low.
The price of a property coming onto the market has fallen by an average of 1.7%, according to new figures from Rightmove.
The drop means the average asking price for a property right now is £267,127, compared to £271,669 in October.
The property website says new sellers are asking for around £4,550 less in a bid to stand out against other properties and boost their chances of finding a buyer during the traditional winter slowdown.
The month of November has recorded a drop in new seller asking prices in eight of the last ten years.
However, the seasonal shift is the smallest for five years with average property prices up 8.5% (£20,890) on average over the year.
Record low stock
Rightmove says that as a result of 2014 being the most active year for property transactions since 2007, average property stock levels per estate agency branch have reached record low levels.
The property website, which covers 90% of the market, reports there are only around 60 properties for sale per agency, which is the lowest number ever recorded at this time of year.
The volume of property coming to the market is also slowing down, further limiting supply. This month new listings were down 1% on the same period last year and 15% down on last month.
So while prices are falling in the run-up to Christmas, there are signs of supply shortages compared to buyer demand, which could push prices up again in 2015.
Christmas traffic surge
Sellers tend to delay putting their home up for sale until January, after the festive period.
But Rightmove warns this is a wasted opportunity as its data shows interest picks up over the nine-day Christmas break, when people have more time on their hands to browse listings.
The website recorded over 500,000 visitors on Christmas Day last year. But come Boxing Day, this rocketed to 1.3 million visits, while New Year’s Day saw 1.4 million hits. By the first working day of the year 2.2 million potential buyers were visiting the site looking for a property.
Rightmove warns that sellers that wait until after the Christmas break to get on the market will miss the wave of activity from these festive window shoppers.
Instead it recommends listing just before Christmas to ensure sellers don’t miss valuable exposure time to this eager audience of potential buyers.
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