Sellers are asking an average of 3.2% more than last month. This average rise of over £7,000 is surprising given the difficult UK and global economic picture. However property in popular locations remains in short supply, supporting upwards price pressure, as seen in London where the average asking price this month is the highest Rightmove has ever recorded.
Miles Shipside, commercial director of Rightmove commented: "A price jump of over 3% is more comparable to the pre-credit-crunch boom-times. Sellers are setting their sights higher, and some agents are going along with them in order to win scarce instructions. Property for sale remains scarce in popular areas, but new supply to the market has to be priced at what buyers are willing and able to pay. An average increase of over £7,000 may prove to be a bit too spicy for some buyers' tastes, now that economic constraints have forced them to develop a simpler palate."
The number of properties coming to market is up by 19.8% on the same period in 2009. It should be noted that the amount of new stock in January 2009 was constrained by the introduction of the ban on marketing a property until its Home Information Pack had been prepared, and this has exaggerated this month’s increase.
New property listings are still down around 37% on the average numbers of properties coming to market recorded in the same period from 2005 to 2008. Average stock for sale per estate agent branch remains static at 63, with property in the more popular locations still in short supply. East Anglia and the South East show least recovery in new supply, still 45% and 43% down respectively on average levels seen at this time of year between 2005 and 2008. Conversely, the North region shows supply recovery to within 6% of 2005-08 levels.
