Property market on shaky ground as ‘asking prices’ soar |
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Published
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Mon, 21 Mar 2005 01:00
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The UK housing market registered a 0.6 percent rise in the asking price from mid-February to mid-March, in spite of the extra 110,000 houses being added to the already brimming supply of properties in the UK and raising fears that the saturated supply is vastly outstripping the poor current demand from buyers.
Every estate agent branch reported 67 properties for sale which was a one-third increase than last year. In fact, stock levels were at historically high levels, with the number of houses flowing into the market stream found to be twice the number of houses being sold off. This was, undoubtedly, one of the highest imbalances the housing sector was facing in the past three years.
| Despite this excessive supply of homes in the market, the average asking price has hit 194,962 pounds, falling short of the all-time high figures last summer by only 1,236 pounds.
Rightmove, the popular property website, stated that such a trend was definitely worrying and if it continued, the economy could have to suffer long term stagnation. However, sellers were just not ready to acknowledge that their asking prices were unrealistically high compared to the excess supply of properties in the market.
The combination of sellers simply asking too much for their property and the well documented personal debt levels at dangerously high levels in the UK is sure to have some further impact on the housing market. It is certain that as more news like this comes to light, buyers will reduce their offers and if not accepted, simply wont buy. Some sellers prices however, look as if they will continue to remain unrealistic.
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