Rightmove measured 167,399 asking prices, around 75% of the UK market, based on properties put on sale by estate agents from 8th July to 12th August 2006 and advertised on rightmove.co.uk.
Average asking prices fell by 1.6% (£3,540) in the last month, bringing the annual rate of increase back into single digits at 9%. The rise in prices this year to record levels has been caused by a miniboom in the south of England. This drop in asking prices for newly marketed properties gives the earliest indicator that prices are past their peak for 2006. Seasonal factors also play a part in the largest average fall since November 2004, as summer sellers have to trim their price expectations with many buyers on holiday. With the average asking price now standing at £214,040, the record average asking price of £217,580 set in July is unlikely to be surpassed again this year, especially in view of the changed interest rate climate.
Miles Shipside, Commercial Director of Rightmove comments: "Prices have passed their peak for 2006. The record price levels seen so far this year were driven by the south of the country. With that market cooling, and the signals from the Bank of England that interest rates may move up again, sellers may have to reduce their price expectations. This welcome dose of reality is good news for buyers, especially in the south of England, where many have been priced further out of the market by the strong growth during the first half of the year".
