Double-dip or Autumn Blip for the Housing Market?

LONDON, Sept. 20 /PRNewswire/ -- The Rightmove House Price Index for September 2010 is released today and finds that the average asking price for a property in the UK dropped by -1.1% in the past month to now stand at GBP229,767.

With the current debate about the impact of the Government's deficit busting measures on economic recovery, this month's statistics from Rightmove give supporting evidence to those for and against a double-dip in the housing market. Proponents of a second major plunge in house prices since the start of the credit crunch will note the drop in new sellers' average asking prices of 1.1% and the fact that this represents the third consecutive monthly fall. However, those seeing this as a short term autumn blip rather than the onset of a serious double-dip, will point out tentative signs of a reduction in new property coming to the market. This has resulted in average unsold stock per agent stabilizing after six consecutive monthly rises.

Miles Shipside, director of Rightmove, comments: "The 'double-dippers' will be able to point to a clear downward trend, with new sellers dropping their asking prices for three months on the bounce. They can cite tough competition amongst sellers and agents struggling to find proceedable buyers for their record levels of unsold stock. Conversely, we are also recording the lowest weekly run-rate of fresh sellers since April. This will give some ammunition to those forecasting a flatter price trajectory as it could be an early sign of fresh supply beginning to wane. However, whether you think we are bumping along the bottom of a U-shaped recovery or are about to double-dip into a W, your property will need to tick all the right boxes to sell this autumn."

September's fall of 1.1%, following on from the reverses of 0.6% and 1.7% recorded in July and August, means that new sellers are asking GBP8,016 less than those that came to market in June. Nearly half the 7% gains in asking prices seen in the first half of 2010 have been wiped out by recent falls and, with the less active months of November and December ahead, national average asking prices are on course to end the year where they started. Where they go from there depends on the ongoing balance between supply and demand.

For further statistics and to download the Rightmove September 2010 House Price Index please visit - http://www.rightmove.co.uk/news/house-price-index or search for local house prices at http://www.rightmove.co.uk/house-prices.html

Rightmove Press Office, [email protected], +44(0)207-087-0700

SOURCE Rightmove Group Ltd

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