The residential property market saw the strongest August trade since 2007 as asking prices for homes on offer did not fall as it is usual for the holiday season, the latest data from Rightmove shows.
There were 8 per cent fewer sellers than a year ago, while buyers remained extremely active. The growing gap between demand and supply did not let prices fall much.
Usually August asking prices drop as sellers keen on offloading their properties sooner rather than later make considerable markdowns.
The situation is different this year though. Rightmove’s research found the top three reasons why many sellers are staying away at the moment. Top concern is that they cannot find anywhere they want to buy. The costs of moving are second most serious reason for people not to consider selling and third is that many cannot find a property they can afford.
Miles Shipside, Rightmove director and housing market analyst comments: “While new seller asking prices have been muted by the traditional summer holiday property slowdown, the underlying shortage of property coming to market compared to buyer demand has helped to deliver the strongest August price performance since before the credit crunch. Buyers can normally pick up some bargains in August as sellers who are marketing their homes when they should be holidaying often have a pressing need to sell and mark their prices down pretty aggressively. At 0.8% down on the previous month, this is the least generous that sellers have had to be for eight years and a clear sign of upwards price pressure in the pipeline.
“The shortage of suitable property being built exacerbates the vicious circle of not enough property on the market to meet demand, increasing prices, and a reluctance among home-owners to come to market if they think the prospects of finding and funding their next move are severely compromised. These stayaway sellers who are seriously considering a move but have yet to put things into motion have concerns around a shortage of choice and stretched affordability. They could be helping to get the country’s limited property stock circulating, but they have concerns about coming to market, deepening the supply shortages affecting many areas.”
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