Jul 19, 2009, 7:01 p.m. EST
U.K. house sellers nudge up asking price
Explore related topics
EU
Story Comments Screener (5)
Alert Email Print Share
By William L. Watts, MarketWatch
LONDON (MarketWatch) -- British home sellers showed renewed confidence in July, nudging up the average asking price by 0.6% from June, according to property Web site Rightmove's monthly housing survey released Monday.
The push comes after sellers knocked the average asking price down by 0.4% in June.
The average asking price of 227,864 pounds ($374,401) is 3.1% below the level seen in July 2008.
Miles Shipside, commercial director at Rightmove, said data have offered "clear evidence" that fire-sale prices were seen last winter.
"In most parts of the country, prices have consistently improved during spring," he said. "With growing confidence that we've passed the bottom, buyers are more active although they may discover that many of the best buys have gone."
Other housing surveys have painted a mixed picture of the U.K. property market, with some showing modest rises in the final sales price in recent months after a steep plunge that began in 2007. But many economists see limited prospects for a sustained housing recovery amid expectations unemployment will continue to rise even as the pace of the U.K. recession moderates.
Since the beginning of the year, the average asking price is up 6.7%, albeit from very a low level, Rightmove said.
Increased confidence and activity has tempted more sellers to test the market. Rightmove has seen an average of 21,364 new sellers per week in July, well below the historic norm of 35,000 but a 20% increase compared to the previous year-to-date average.
Shipside said there are three possible scenarios for the housing market. A "double dip" scenario would see asking prices fall by 10% in the second half of the year amid ongoing tightness in mortgage lending, rising unemployment, and a large increase in the number of repossessed homes coming on the market, he said.
A "resurgence" scenario would entail a further 5% rise in the asking price for a 12% annual jump, driven by a pickup in buyer interest and mortgage availability amid a limited supply of available houses.
Shipside said a "steady state" scenario is the most likely, with prices flat for the rest of the year as mortgage availability and the number of sellers remain at subdued levels.
William L. Watts is a reporter for MarketWatch in London. |
