Prices Fall But Positive Signs for 2013?

LONDON, November 22, 2012 /PRNewswire/ --

Rightmove reports that average asking prices dropped by -2.6% (-£6,407) over the past month. This follows the now familiar post-credit-crunch pattern of price falls in November. However, this is the least severe November fall since 2009 and still leaves prices 2% (+£4,617) ahead of where they were this time last year - the highest annual rate of increase achieved in November for five years. London continues to buck the national trend, but, even with the large lift in London prices removed, the rest of the country is broadly stable (+0.2%) year-on-year. This, alongside some favourable signs from other lead indicators, suggests a somewhat brighter outlook for 2013 as we enter the traditional winter slowdown.

Miles Shipside, director and housing market analyst at Rightmove comments: "Though the market remains patchy and national statistics are given a gloss by a buoyant London market, there are a number of positive trends that justify cautious optimism as the market enters its' winter recess. Outside the capital, agents report prices are broadly flat in many parts of the country compared to a year ago. This stability may indicate a sounder springboard for 2013 as the wait goes on for a sustainable recovery in transaction numbers."

This November's decrease of 2.6% should be put into the context of November falls of -3.2% and -3.1% in 2010 and 2011 respectively. With asking prices of property coming to market up by 2% compared to a year ago, the annual rate of increase is the highest at this time of year since the 7.9% recorded in November 2007. The two-speed market of London versus all other regions is well documented, though even with London's 8.8% annual increase removed from the dataset the rest of the country still shows marginal year-on-year growth (+0.2%).

Shipside adds: "There's a two-speed market, with sellers in the capital seeing near double-digit price growth in a year whilst the average for everywhere else remains broadly flat. However, digging beneath some of the headline regional figures unearths evidence of a second two-speed scenario in many local markets, with those that are willing or able to price under the competition selling and moving on, while those that can't or won't stay put."

For more information please visit http://www.rightmove.co.uk/news/house-price-index

Rightmove Press Office +44(0)207-087-0700 / [email protected]

SOURCE Rightmove