Property asking prices hit record high - in the south
The average asking price in England and Wales hits a new high, says rightmove, but there are big differences between the north and south.
The average property asking price in England and Wales has reached a record high, according to property website rightmove’s April index.
This month’s average asking price is £243,737, beating the previous record set in May 2008 by £1,327. But inflation means that prices are actually down in real terms by 9.9%.
And the increase is mostly due to a rise in asking prices in London, which have shot up by 14.9% since that previous peak nearly four years ago. Both London and the south west have passed their previous asking price peaks this month, although in London’s case the previous peak was in March.
Outside London, asking prices have fallen by an average of 4.3% over the same period. In addition to London and the south west, the only places where asking prices are rising are the south east and East Anglia. These findings broadly mirror the increases in sold prices from Nationwide's recent study of first quarter house prices.
The marked north-south divide in asking prices is illustrated by this table, which shows the difference between asking prices now and their previous peaks:
|
Region |
Current average asking price |
Difference from previous peak price |
|
Greater London |
£464,944 |
£9,785 |
|
South West |
£270,735 |
2.3% |
|
South East |
£316,245 |
-0.3% |
|
East Anglia |
£230,111 |
-1.1% |
|
North |
£151,891 |
-5.8% |
|
West Midlands |
£187,816 |
-8.7% |
|
North West |
£167,352 |
-9.1% |
|
East Midlands |
£165,041 |
-10.3% |
|
Yorkshire & Humberside |
£156,672 |
-11.6% |
|
Wales |
£164,943 |
-12.3% |
In most cases, the previous asking price peak was in the second half of 2007, prior to the run on Northern Rock.
Rightmove says a lack of properties for sale is holding prices up in the regions where they are still rising, particularly in London and the south west.
Miles Shipside, rightmove director, said: “While there are still micro-market hotspots in the north, there are more negative elements to add in to their moving equation, such as employment prospects and lack of equity.”
However, the average number of properties for sale per estate agent has risen to its highest level since November last year.
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Comments
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I hope there's a property article on 26th May. Nickpike invited us all to meet here so that he can gloat about the 50% house price crash that he predicted on that date in 2009.. Sussex Miller. I think you missed the line in the article that noted that although there's a gap between asking and selling prices, (as we would all expect) the change (up in both cases) is similar in the recent reports.
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Interesting to see that the SE has, according to this, dropped. Appears to be the opposite in the SE around my way (Southern Surrey/Hampshire/Berkshire boarder). Unfortunately the prices have never seamingly dropped but are still on the rise. Maybe not the same % as London, but increasing nonetheless.
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There is such a disconnect between 'asking prices' set by estate agents and selling prices paid by a willing buyer and subject to economics of the market. A Chartered Valuer will also indicate a realistic value that will bear no relation to the asking price and in my experience can easily be 10% less than the 'asking price'. The fact that asking prices are rising underscores the idiocy of the estate agent based property pricing trending methods when Land Registry sold prices continue to be flat or falling outside London.
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20 April 2012