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Average Asking Prices Fall for the First Time in 2011
Rightmove have recorded that the average monthly asking price for property coming to market has fallen for the first time this year. After six consecutive months of rising prices, July has seen a fall of 1.6% (£3,797), eating into the gain of 8.1% over the first half of the year. With around 70% of property marketed so far in 2011 still on the market, new sellers will need an edge over their competition to increase their chances of sales success.
Miles Shipside, director of Rightmove, comments: "Summer sellers are more nervous about their selling prospects than the early birds who asked ever higher prices during the first six months of this year. Early sellers in 2011 had a chance of worming their way into the more active spring market, whereas those coming to market now at the onset of the holiday season have to price more aggressively as many buyers have already gone to ground. With seven out of ten properties marketed so far this year still on the market, sellers in the second half of 2011 need to do something different to promote their property and increase their chances of catching those elusive buyers."
This is the largest July fall for three years, since the 1.8% recorded in 2008. Sellers at this time of year traditionally show more pricing restraint than those in the first six months of the year, and we expect further falls over the next few months as buyer momentum ebbs away due to a combination of seasonal factors and a continuing lack of both mortgage finance and buyer confidence.
Rightmove's research shows that the first week of marketing creates nearly double the interest of any subsequent week. It is therefore vital to set your initial price at the right level to take advantage of the impact made by a fresh property.
Shipside advises: "The highest level of interest in your property will be in the first week it comes on the market-and first impressions count. It's often hard for sellers to be objective about their cherished property, so it's important to look dispassionately at the three Ps: Presentation, Price and Promotion."