The average asking price of homes put up for sale in England and Wales fell sharply in December, according to estate agents Rightmove.
The average asking price of homes put up for sale in England and Wales fell sharply in December, according to estate agents Rightmove.
Asking prices were down 3.2% from November with London, which suffered a 6.8% drop, the worst affected region.
Asking prices were down 3.2% from November with London, which suffered a 6.8% drop, the worst affected region.
A rush of people wanting to sell before the extension of home information packs on 14 December, allied to traditional seasonal weakness, caused the decline.
Rightmove said the decline was caused by people wanting to sell before the extension of home information packs on 14 December and seasonal weakness.
Asking prices are different from sale prices which have also fallen recently.
Asking prices are different from sale prices which have also fallen recently.
'Deteriorating conditions'
'Deteriorating conditions'
Recent indicators have suggested the housing market is cooling, with the Halifax recently reporting sale prices falling in each of the past three months.
Recent indicators have suggested the housing market is cooling, with the Halifax recently reporting sale prices falling in each of the past three months.
Rightmove's own data has been volatile in recent months, with asking prices rising in October but falling in September and November.
Rightmove's own data has been volatile in recent months, with asking prices rising in October but falling in September and November.
It said December's figure had been distorted by a disproportionate number of one- and two-bedroom properties coming on the market in the past few weeks.
It said December's figure had been distorted by a disproportionate number of one- and two-bedroom properties coming on the market in the past few weeks.
The substantial drops in asking prices are further confirmation of the underlying trend of more sellers re-adjusting their prices downwards Miles Shipside, Rightmove
The substantial drops in asking prices are further confirmation of the underlying trend of more sellers re-adjusting their prices downwards Miles Shipside, Rightmove
Home information Packs (HIPs) became mandatory for anyone selling such properties on 14 December, a deadline which experts had forecast would trigger a surge in sales by people wanting to avoid incurring the cost associated with them.
Home information Packs (HIPs) became mandatory for anyone selling such properties on 14 December, a deadline which experts had forecast would trigger a surge in sales by people wanting to avoid incurring the cost associated with them.
According to Rightmove, every region saw prices fall this month except the West Midlands, where prices rose 1.7%.
According to Rightmove, every region saw prices fall this month except the West Midlands, where prices rose 1.7%.
The average asking price dropped by more than £7,000 to £232,396.
The average asking price dropped by more than £7,000 to £232,396.
December is traditionally a quiet month for the property market and asking prices have fallen this month in each of the past three years.
December is traditionally a quiet month for the property market and asking prices have fallen this month in each of the past three years.
But Rightmove said the extent of the slide reflected "genuinely tough market conditions".
But Rightmove said the extent of the slide reflected "genuinely tough market conditions".
"The substantial drops in asking prices are further confirmation of the underlying trend of more sellers re-adjusting their prices downwards to try and tempt buyers in deteriorating market conditions," said Rightmove's commercial director Miles Shipside.
"The substantial drops in asking prices are further confirmation of the underlying trend of more sellers re-adjusting their prices downwards to try and tempt buyers in deteriorating market conditions," said Rightmove's commercial director Miles Shipside.
House price inflation is expected to continue to slow next year as continuing credit and affordability restrictions dampen activity.
House price inflation is expected to continue to slow next year as continuing credit and affordability restrictions dampen activity.
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