February’s House Price Inflation

People selling their houses in February have put up the asking price by an annual 5.8% even though there are a lot of properties on the market and a slowing is expected.

This rise in asking prices is the first since October and January saw a 3.4% two year low.

House prices are expected to fall by 5% this year so a big rise in the asking price does not follow suit.

Houses were remaining on the market for an average of 78 days last year from mid January to mid February but now are on the market for an average of 93 days.

Less one and two bedroom properties have come on to the market since Home Information Packs were introduced for the smaller property and this distorts the price market.

The average asking price in February was £237,856 giving an increase of 3.2% on January’s prices. It is noted that it is traditional for prices to be raised at the beginning of the year.

With the increase of an economic slowdown it seems unlikely further cuts in the base rate will be made in the near future.

It is apparent that the interest cuts have given hope to sellers but the rise in asking prices is unrealistic given the amount of property already on the market.