Average asking prices jump by 3.5%
Rightmove reports that new seller average asking prices have risen 3.5% (+£8,310) over the past month, the biggest increase for eight months. This goes a long way towards reversing the Olympic-induced price lull over the summer, which saw asking prices of property coming to market fall by 4.6% (-£11,377) over the three months between June and September. This October price rebound indicates the market is not performing as badly as some feared. However, sellers looking to try for a higher price should note Rightmove research which suggests that only a few segments of the market have a robust statistical case to justify higher property values than seen in the peak years of 2007 and 2008. In addition, fewer than two in five potential buyers state that they would actually arrange to visit a property if they consider it to ‘match their criteria but be over-priced’.
Rescue my Pension’s Viewpoint
This is typical to what we have seen all year, asking prices (and selling prices) rising and failing month to month. If we look at the year as a whole property values have changed very little as we predicted back in December. What is clear, returns remain impressive and strong investment opportunities remain available.