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Asking price rise signals 'some life' in the market

By Stroud Life  |  Posted: October 17, 2012

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County agents say there are encouraging signs in the market but warned sellers against overpricing after a property website revealed asking prices have risen by more than £8,000 in October.

It is the biggest jump seen in eight months, Rightmove said this week, adding the autumn rebound showed "evidence of some life in the market".

The typical property asking price rose by 3.5 per cent month-on-month to £243,168, as all regions across England and Wales saw prices increase.

James Birt, partner at Naylor Powell, which has three branches in Gloucestershire including Stonehouse, said higher prices in the county were a sign of a healthier market.

He said: "I think there has been a significant increase in confidence in the Gloucestershire property market over the last few months which in turn has led to these higher asking prices.

"There is also a shortage of property, creating competition for new instructions and some less regulated estate agents are getting a bit carried away with the asking prices in order to secure the instruction.

"There is no doubt about it though, the property market is significantly healthier than it was a year ago. We are seeing a large increase in activity at our Newent branch, with a record number of sales being agreed for the last three months. Both Gloucester and Stonehouse branches are also performing well."

Sacha Cresswell, of Philip Pugh and Partners in Cheltenham, said prices were high in the town but put it down to over generous valuations by agents.

She said: "I think there are some very high asking prices out there but I think that's down to competition between estate agents because there is not a lot of properties coming onto the market."

She added this behaviour was "hindering" the market and frustrating sellers.

In a message to vendors, she said:

"Unless you price your property at the right price, you will not get viewings.

"That is one of the big problems and there are a lot of frustrated sellers out there."

The jump means prices in England and Wales are 1.5 per cent higher than a year ago and goes some way to reversing a drop in prices between June and September, when the market saw a lull amid distractions like the Olympics.

The Council of Mortgage Lenders said last week that mortgage lending to home-buyers hit a two-year high in August.

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  • Alphonso2  |  October 17 2012, 12:22PM

    More spin from Estate Agents who are in denial as always!

    |   -1
  • NibNobs  |  October 17 2012, 8:38AM

    I don't understand this, if you do a local postcode search on rightmove.com week after week, month after month the SAME houses in your area remain un-sold, even after being reduced many more than once. Family 3 bedroom houses under £150,000 appear to be selling though and anything for rent under £700 a month seem to get let within a few days.