By Marcus Leach
In the latest property market research it has been revealed that in April alone sellers have increased prices by £4000, taking the total rise in house prices to £13,000 since the start of 2011.
The problem being that buyers are not prepared to meet the increased costs, meaning the higher asking prices look misplaced.
“With buyers still struggling to raise the necessary finance, the net result has been the biggest jump in unsold stock on agents’ books that we have recorded in nearly four years," Miles Shipside, director of Rightmove, said.
"While stock levels normally increase during the first half of the year, this is a larger increase than normal. With government cuts starting to bite and interest rate rises still expected in the second half of the year, those who are serious about selling should look to price more keenly in the spring selling season.”
With sales down Mr Shipside warned that the run of bank holidays the nation is set to enjoy could hinder the already low transaction levels in the property market.
“Britain’s bank holiday bonanza could prove an unwelcome distraction for the spring housing market if potential buyers take short breaks and holidays rather than pursuing their next move. At a time when all eyes are on the House of Windsor, will enough eyes be on the houses of those looking to sell in Britain’s over-stocked housing market?”
He suggested prices will fall further this year from typical levels of around £160,000.
“The tough selling environment that the less wealthy areas are currently experiencing is likely to deteriorate further in the latter part of 2011,” he explained. “In these areas the spring moving season offers the best opportunity for sellers to achieve success if they embrace ‘serious sales’ tactics.”