The price of property coming to market has increased by the lowest amount for eight years on a monthly basis, Rightmove’s House Price Index has revealed.
The portal’s latest data shows that February saw asking prices increase by 2% or £5,986 to average £306,231, the smallest monthly increase since February 2009 and below the average of 5% typically in this month.
Prices were up 2.4% annually, which is the lowest increase since April 2013.
The average time to sell increased from 72 to 79 days between December and January, while the average stock per agent increased slightly from 51 to 52.
Miles Shipside, Rightmove director, said buyers were now far more price sensitive: “The majority of the market is price sensitive with most agents we surveyed reporting that possible buyers are reluctant to enquire about a property just a few percent too high in price.
“With the annual rate of price increase now at 2.3%, a property that is over-priced by more than 5% will have to wait more than two years for the market to catch up with it.
“Some sellers may have thought there is no price to pay by starting high and reducing the asking price later. However, our extensive tracking of properties that have found a buyer shows that a property should substantially out-perform the level of interest in similar properties in the local area during the first three weeks of marketing to minimise the risk of being left on the shelf.
“Over-pricing loses you that vital initial interest and impetus, and buyers often have reservations about a property that has not sold as quickly as others or has had a price reduction.”