Yahoo Finance Would-Be Sellers 'Must Drop Asking Prices'
Asking prices for homes have dipped for the first time in six months, according to a new study.
Market trend website Rightmove (Other OTC: RTMVF.PK - news) said the average asking price fell by 1.7%, which amounts to £4,138 for the typical home.
The firm said it was also the first July in four years in which prices have dropped, and added that the ratio of people trying to sell their homes now outnumbered actual buyers by two to one.
Because of the oversupply of homes on offer Rightmove are warning sellers they need to cut prices further to remain competitive.
It said people looking to view homes have been enticed elsewhere by "sporting distractions of Olympic proportions" and the ongoing poor weather.
Rightmove director Miles Shipside said estate agents have a "stubbornly high" level of 75 unsold properties on their books.
"The fact that we have not seen major price falls in the UK and that many areas are not awash with agents' 'for sale' boards may lead some sellers to be over-optimistic with their pricing," Mr Shipside said.
"New seller numbers may be down some 30% on the period prior to the credit-crunch, but the numbers achieving a successful sale are down by half and average unsold stock levels are creeping up.
"Sellers need to adjust, as this new world is the new norm."
Some 110,000 newly-marketed homes are put on the market each month, with an average asking price of £242,100, according to Rightmove.
However, actual sale prices are much lower – the Land Registry said the average selling price in England and Wales was just £161,700 during May.
The latest statistics come as the Nesta innovation index said the UK has experienced a ‘lost decade’ of innovation, with new evidence showing that businesses had a crisis of confidence and prioritised so-called cash and concrete over research.
Nesta said investment in innovation by British businesses has fallen by £24bn since the recession began and has not recovered – a figure five times what the Government spends yearly on science and technology research.
