Rightmove.co.uk - England and Wales House Asking Price Rise Sharply as Stock Levels Begin to Dwindle
Average Property Asking Price: £170,720
% Change in Month: + 3.3%
% Change in Past Year: 9.8%
Monthly Index (Jan 2002 = 100) = 138.9
Asking prices increase 3.3% - the largest monthly increase seen in the past 18 months.
A growing shortage of houses for sale is feeding through into higher asking prices.
Greater London shows the same characteristics as the rest of the country - but to a greater extent:
- Asking prices are up 4.5% month on month
- Demand continues to outstrip supply with time taken to sell down 9% this month
Overview
Asking prices increased by 3.3% in October, the biggest increase seen in the past eighteen months. The year on year growth rate remains in single digits at 9.8%, but market conditions have changed rapidly. The market indictor shows demand for properties steadily outstripping supply for the last 5 consecutive months. This reduction in the number of properties on the market has now fed itself through into a sharp increase in asking prices as estate agents and vendors capitalise on the demand for properties and a steadily growing shortage of supply. This, combined with stable interest rates and the traditional autumn demand, means that the average time on market has also shown a large decrease in the past four weeks, where properties are coming off the market at a much quicker pace. A sharp increase in Greater London's asking price this month has brought the annual inflation from a negative growth rate of 0.7% to a positive rate of 2.5% as the London market conditions mirror the national conditions.
The number of properties coming off the market exceeded the number coming on the market for the fifth month running. With 35,380 more properties coming off the market than coming on, a shortage of properties for sale in the autumn is materialising.
How long a property takes to sell
The Time on Market Indicator for London shows a large decrease compared to last month, while nationally the figure has also shown a moderate decrease. A clearer turning point in the time on market for London and nationally this month means that estate agents need to replenish their stock at a much quicker pace than was occurring in the summer. The national figure now stands at 66.2 days and the London figure at 69.6 days, a decrease in the month of 9% for London and 4% nationally.
Regional overview
Almost all of the regions have seen increases this month apart from Wales. England has experienced a large mixture of increases this month, ranging 0.8% to 6.4%. Although regional house prices in the North seem to be coming off their peaks last month, recent market conditions have re-injected more life into the region with the year on year increase now breaking the 20% barrier once again. Particularly large price increases have been recorded in: the North +6.4%; East Anglia +6.3%; South West +5.4%; Greater London +4.5%; Yorkshire & Humberside +3.4%; and the West Midlands +2.5%.
Property Type
Detached property prices have increased by 2.7% and semi-detached by 1.8%, however terraced houses increased by 5% and flats/apartments by 4.5%, clearly reflecting the stronger demand for cheaper and first time buyer properties.