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Asking prices at highest since start of financial crisis

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
18/02/2013

The asking prices sellers are demanding for their properties have risen to the highest since the start of the financial crisis, research has revealed.

According to Rightmove, the average price of a newly marketed house is £235,741, the second highest ever seen in the month of February and just £2,115 shy of the February record set in 2008 before the collapse of Lehman Brothers.

While asking prices tend to increase between January and February thanks to more new stock coming to market after the Christmas lull, this is the highest average price recorded at this time of year since 2008, illustrating a slow but steady recovery in prices, which has taken five years.

Miles Shipside, director and housing market analyst at Rightmove said: “There has been a sprightly start to 2013 and, while market activity remains patchy across locations and property type, some agents are reporting their busiest new year since the onset of the credit-crunch. While encouraging, it’s far too early to pop the champagne corks as certain sectors will remain on ice until the return of wider-spread mortgage availability.”

Rightmove also recorded its busiest ever month in January with those planning a move searching in record numbers and contacting agents with more follow-up enquiries than ever before.

Downsizing was cited as the number one reason for moving house.

After downsizing, ‘lifestyle reasons’ were the second driver for selling. Only in London did sellers indicate a desire to upsize, with a need for more space the primary reason for moving.

Seven in ten of those who intended to sell in 2013 were over 45, according to the survey, while half planning to buy will do so for at least the third time.

Shipside said: “Those who bought thirty to forty years ago reaped the rewards of several price booms and many are now of an age where they wish to downsize, release equity and reduce their outgoings.

“These make up the largest group of intending sellers and, in many instances, they have the advantage of being cash buyers.

“With increased life expectancy they face the challenge of supporting themselves financially for longer than previous generations, but have the head start of multiple-level return on their original investment in property.”


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