House sellers still asking too much

24 March 2005
As the housing market fills up with more and more houses on offer, sellers continue to "defy logic" by asking too much for their homes.

This is the opinion of property website Rightmove, which has seen a rise of 0.6 per cent in asking prices on homes between mid-February and mid-March.

Rightmove said sellers' optimism went against logic, dictated by the fact that the number of homes for sale is increasing in number - 110,000 new properties were listed for sale over the last month and 280,000 over the last three months, Reuters reports.

"The number of properties coming on the market is almost twice that coming off, the biggest imbalance in three years," said the Rightmove report.

"Combined with a backlog of properties on the market from last year and a large volume of new instructions since January, stock levels remain at historically high levels."

However, the monthly rise in asking prices is significantly less than the increase of 2.3 per cent seen between mid-January and mid-February, and the annual asking price inflation rate fell from 11.1 per cent to 8.6 per cent, the lowest since the survey began in 2002.

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