Asking prices of properties coming on to the market have fallen by 1.2% – meaning that the usual autumn price bounce has failed to materialise.
It is the first monthly fall at this time of year since 2013, Rightmove said this morning.
The average new asking price is now £310,003, down from August’s £313,663 – which was itself down 0.9% from July’s £316,421.
Since November last year, there have now been five months when Rightmove has reported falls in new asking prices – November, December, June, August and now September – and six when there have been rises.
This month’s average fall in new asking prices has been led by a 2.9% drop in London, and smaller falls in all other southern regions.
The monthly drop if London were removed would be much smaller, at 0.5%.
Rightmove director Miles Shipside said: “There were autumn price bounces nationally in 2014, 2015 and 2016, but the south of the country has turned this month into a bit of a damp squib, whilst some northern regions are still showing marginal signs of upwards price pressure.
“Estate agents are clearly advising many sellers that they have to lower their price expectations.”
He said it was “unavoidable” that house prices would eventually reach a limit.
Rightmove said there is still an under-supply of properties, but the number of sales being agreed by agents is up 4.8% on last year.
The average stock per branch is 60, including those under offer or subject to contract. Average time on the market is 62 days.
It is worth noting that Rightmove’s ‘monthlies’ aren’t quite the same as anyone else’s: what Rightmove calls its September house price index actually measured new asking prices of properties entering the market between August 13 and September 9.
Another bog standard report which doesn’t take into account the fact that our grand city state and the Home Counties surrounding it increasingly have their own market divorced from the rest of the country. Also, he refers to the “south” of the country as being a “damp squib”. In the south-west (half of the south because “south” doesn’t exist in the statistics) we are absolutely fine with transactions having increased slightly over the year and prices holding up well. Additionally, if a reduction in asking rices is resulting in more sales more quickly at market value or close to, that is a very positive thing.
Miles really needs to be more professional in his reporting. Rightmove reports are read by a lot of people.
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