Selling your home, even via a low cost online estate agent like eMoov.co.uk, still requires that your asking price is accurate. Today’s Nationwide house price index reports that prices dropped by 0.5% in July.
It tells a similar story to that of the Halifax earlier this month which stated that their index showed a fall of 0.6%. It’s somewhat unusual these days for both indices to concur and it certainly adds credibility to the view that values are no longer rising as they were.
The Nationwide points to a lack of buyers as the reason why less demand then equals lower prices and says that sale volumes are still very low.
It’s obvious to us that there is another problem and that is simply one of over priced houses leading to a shortage of transactions. Those sales that are being achieved are definitely at lower prices than earlier this year.
There are buyers around and many can get mortgages. But the buyers that are out there should be credited with some intelligence. They simply will not pay over the odds for a home when there is now substantially more choice of stock and where they see that the market is considerably weaker before. This is highlighted by Rightmove who say that property stock is at its highest for three years yet, asking prices (not sale prices) have been steadily increasing month after month. That is unjustifiable.
Price keenly and you will sell. Hold out for an unrealistic amount, and you just won’t.
Here is the Nationwide report http://www.nationwide.co.uk/hpi/historical/Jul_2010.pdf