Terry Lucking owner of leading letting agencies in Peterborough and Cambridge refers to a news article in Estate Agent Today and ask investors whether this is the start of the next major upward curve in house prices.
Shortage of properties pushes asking prices up to near-record
Monday 15th April 2013
A shortage of sellers has pushed asking prices up by 6.9% so far this year, Rightmove reported this morning.
The average asking price now stands at £244,706, a new record for April and up 2.1% on March. It is the second highest asking price average ever recorded, and only £1,529 off the all-time high.
The only region where asking prices have not risen is London.
The number of new listings nationally is down 4% compared with this time a year ago.
Rightmove director Miles Shipside said that asking prices look set to continue to rise.
He said: “Transaction volumes may be historically low but, paradoxically, new seller asking prices are within a grand and a half of a new record high.
“With mass-market buyers still sitting on the sidelines, the size of the active market is a lot smaller, making it easier for an upswing in activity to feed through to an upturn in prices.
“With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record.
“This should not be confused with an overall market recovery, as while spring may be here, the ongoing chill of the recession is still in the air. However, it is true to say that more estate agents are reporting more activity in more segments of the market.”
Shipside said there were abnormally low new listings during Easter week.
The Rightmove data also shows that the gap is narrowing between the last-advertised asking price on Rightmove and the sold price recorded with the Land Registry. In December the gap was 3.39% but it now stands at 2.95%.
However, the Rightmove asking price of £244,706 stands well clear of the ‘actuals’ currently quoted by Halifax and Nationwide, which are respectively £163,943 and £164,630.
Free Advice from Belvoir
Terry and his team are willing to help investors and landlords offering free pre sale visit and assessments. Just click terry.lucking@belvoirlettings.com or call 07801 865780 to arrange a free buy to let one 2 one session.
Belvoir Peterborough are accredited and regulated agents. Members of ARLA, Safe agent, Safeagent and the Property Ombudsman. It is a requirement for a member of ARLA and Safe Agent to have Client Money Protection and have their accounts independently audited annually.
