| Housing market recovering: Rightmove survey |
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LONDON: Property website Rightmove found further evidence that the housing market is stirring back to life. The website reported a 0.8 percent rise in the average house price in the 4-week period between 9 October and 12 November.
The average asking price in England and the Wales continued to rise for the second month, up by £1,507 in the four-week-period. Prices have reached what Rightmove calls a “sustainable level” where the buyers do not have to be lured by heavy discounts.
The average house price is now up at £197,855 from £196,348. Annual house price inflation rate was seen to rise 4 percent (up from 1.5 percent last month). This upward movement of property prices and the cut in borrowing interest rate is believed to have worked, in effect nudging the housing market back to life after the boom had subsided and prices had plateaued across England.
Rightmove explained that the new encouraging levels were not a sign of a “return to a boom market” but more of a reflection of the high sales during summer months being processed to completion.
It is also a sign that “confidence is back” said Miles Shipside, Rightmove’s commercial director. The situation had raised the confidence of both the buyer and the seller that a deal was now possible.
Other indications were: the number of unsold properties on estate agents books dropped to 69 from 73 per branch seven months back; 8 out of 10 regions had seen prices rising and the biggest gainers were Greater London where prices (on a monthly level) were up by 3.5 percent and East Anglia with a 3 percent rise. There were a few exceptions such as South East where prices dropped 0.7 percent and East Midlands with prices down by 1.4 percent.
Rightmove’s report is likely to encourage both homeowners as well as first-time buyers. Most property market analysts consider the findings evidence of a “turnaround”, but Rightmove warns that some places continued to have over-priced properties which may prove difficult to sell. The price expectations in these places are “too high to benefit from the improving buyer sentiment” Shipside said.
The Rightmove survey covered 130,000 properties.
Most property owners are certain to compare the Rightmove’s report with another one expected later today from the Office of the Deputy Prime Minister. The OPDM survey is also regarded as a serious and more accurate indicator of the housing market.
Posted
on : Mon, 21 Nov 2005 13:10 GMT | General News
By : Anne Philips
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