Asking prices for homes fall to lowest level

Posted under General by Alan

Asking prices for homes in the UK have reached their lowest level since 2002, reported a search agency in the UK.

According to agency’s house price index, number of properties being offered for sale in November 2008 fell to 20,000 a week, down from 35,000 houses during November 2007.

The information released by search agency indicates that average asking price of a house in Wales and London up to November 8 was £223,000, which is 2.9% down from October. This again was the highest fall since 2002.

The UK home asking prices are down 7.1% from previous year, but the search agency claimed that sales were taking place at prices more than 20% lower than the highest prices fetched in 2007. It stated that if sellers demand realistic prices, prospects of selling homes would increase significantly.

According to the agency, many sellers are reluctant or unable to offer big discounts, particularly those with negative equity of their properties. If they come forward with reasonable discount offers they would be able to sell more quickly and cut back on their waiting period.

The average waiting time of a property on sale has reduced marginally, not because of early sales but due to withdrawal of properties on account of lack of interest.

It is however believed that high interest rate cuts, brought to lowest level since 1955 by the Bank of England, would serve for revival of the property market next year.

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