House prices falling, properties not selling
House asking prices have remained very static in the last year and have now started falling. Whilst this is not good news, anything which may start some momentum in the market may be the lesser of 2 evils.
Rightmove reports that in July, the average property lost nearly £3,800.00 in value which is around 1.6% of the average value, and it seems this has been caused by the fact that properties are simply not selling with only 3 out of 10 properties which have been on the market during 2011 having been sold. The average number of unsold properties per estate agent is at historical highs at nearly 80, mortgages are still hard to come by and sellers may have the problem that even if they are reluctantly willing to reduce their price, lack of equity or negative equity issues may come into play.
As ever, there are regional , area and property type fluctuations so it is always worth checking about the type of property, area and latest available information whether you are a buyer or a seller.
