New sellers have raised average asking prices by 1.8%, the largest rise in 14 months according to the latest house price report from Rightmove. This is the third consecutive rise which may be more than a seasonal bump, although many vendors are still starting too high and lowering prices.
There are 22,000 sellers per week tempted to the market, the report states, which is also up by as much as 13% on the March figure which is another signal of growing confidence, whilst any early signs of recovery should also be put into the context of mortgage approvals running at a third of what they recently were. Time on market for properties has also fallen from 81 to 77 days, another good indicator.
Miles Shipside from Rightmove said: ‘My view is that many sellers are still starting too high, but the fact that they are coming to market in greater numbers and feel they can ask more shows a strengthening in resolve and confidence, which is an encouraging sign. It looks like we are now bumping along the bottom of the trough, but for there to be any real sense of optimism that we’re on a sustainable road to recovery, the availability of mortgage finance needs to improve significantly, given that mortgage activity is currently running at around a third of its average levels between 2002 and 2007. Thankfully mortgage lenders are finally starting to release more funds to finance new house purchases.’
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