Asking prices may have risen 2.8%, but they won’t be selling

David Adams, head of residential at leading property consultants Chesterton Humberts, comments on Rightmove’s data showing that asking prices for homes in England and Wales rose 2.8% in the past month:

“While asking prices may have risen 2.8%, properties outside of London aren’t selling at that increased level. This is an agency-induced increase that is not sustainable. There is a massive stock shortage in much of the country and agents desperate for instructions are giving unrealistic quotes to prospective sellers. The asking price rise has nothing to do with the market and everything to do with inexperienced agents frantic for stock to sell.

“We are likely to see a quick decline in the volume of sales outside of London in November and December as buyers will not pay over the odds for properties coming to market overpriced. In London, foreign buyers buoyed by the weak pound, will continue to buy as long as the exchange rates are in their favour. At the moment they are still able to buy with a 40% discount from peak prices.

“We are now seeing prices in excess of those achieved in 2007 in Chelsea. On one property alone we have had 18 bids.”

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