House Prices May Regain Pace
Property sellers have increased their asking prices as demand for desired properties significantly exceeds supply. According to RightMove, the average asking price in England and Wales rose by 2.6 per cent in a month, while London house prices climbed up by one per cent with average house price now being £ 235,512.
This month the pace of properties’ coming into the market can be comparable to the level before the breakup of Lehman Brothers. Asking prices are now 6 per cent higher than they were last April. The proportion of unsold properties per each estate agent this April has risen by 3 percent since last month. The supply of properties is forecast to continue growing.
The majority of UK regions have shown price increases this month. For the first time in two years, all areas in London have registered price increase.
Many experts have raised concerns that the UK housing market can be directly impacted by the upcoming election results. If the UK ends up with a hung parliament after the general election on 6 May, the market may enter into a state of slow life processes until there is more clarity.
The recent Royal Institute of Chartered Surveyors report clearly shows that supply is surging while buyers are staying away. Asking prices have little to do with what the property actually sells for. Once agents realise that the demand is not there asking prices will fall.
No. More sellers, fewer buyers. Simple supply/demand economics. The price of the commodity, in this case the house, goes down. Just because a buyer or agent is greedy and wants to push up the price does not mean anyone will pay it. People are not stupid and they can see when they are being pushed too far. Also you seem to forget that everything is debt funded. If the banks don't like what prices are doing they will either down-value or refuse to lend.