Home Asking Price Index, October 2010: autumn home vendors price too high
Asking prices in England and Wales rose 0.5% in September but stayed 0.3% down annually, with unsold stock up 16% and price cuts reaching 93,202.
This is the October 2010 edition of the Home Asking Price Index, released on 12 October 2010, under the headline:
Autumn Home Vendors Price Too High
The headlines and summary below are the report's own words, with the key figures as it published them, followed by the report's charts and regional tables as printed.
Headlines
- The mix-adjusted average Asking Price for homes on the market in England and Wales has risen by 0.5% over the last month.
- 12-month asking price falls in 6 out of 9 English regions, Wales and Scotland.
- Total number of UK properties for sale has increased 16% since October 2009.
- The number of properties reduced in price has risen to a new 20-month high of 93,202 during the month of September.
- Annual change in asking prices: -0.3%.
- 6-month change in asking prices: -0.1%
Summary
Prices of homes on the market jumped up 0.5% over the last month but this does not mean that the market has escaped the twin downward price pressures of mortgage rationing and over-supply. This month's upward movement is largely due to a seasonal surge in properties for sale, placed on the market at overly optimistic prices. However, this is set against a backdrop of increased price-cutting both in frequency and value (a new 20-month record for September). Moreover agents' sales stock levels are now 16% higher than a year ago and this will only fuel the growing 'discount culture' in the UK housing market.
Over the last 12 months asking price falls are evident across most of the UK with only East Anglia registering a significant increase of 1.7%. Looking at the overall average performance of the UK housing market prices appear fairly stable, although the regional picture shows that some areas have fallen by as much as 2.0% over the last year (e.g. Yorkshire and Humber). Other poorly performing regions were Wales, the West Midlands and the North West.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price | £228,122 |
| Monthly change in asking prices | +0.5% |
| Annual change in asking prices | -0.3% |
| 6-month change in asking prices | -0.1% |
| Typical (median) Time on Market | 109 days |
| Average (mean) Time on Market | 184 days |
| Increase in properties for sale since October 2009 | +16% |
| Properties reduced in price during September | 93,202 |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Laspeyres Index based on Weighted Arithmetic Mean of Weighted Arithmetic Mean of Regional House Prices. [May04 = 100]
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Source: HM Land Registry
Regional tables
Regional Asking Prices for October 2010, showing gains and losses since October
| Current average price | 12-month change | |
|---|---|---|
| East Anglia | £244,340 | +1.7% |
| Greater London | £343,407 | +0.1% |
| South East | £286,253 | +0.1% |
| North East | £154,787 | -0.2% |
| South West | £253,855 | -0.3% |
| Scotland | £159,988 | -0.4% |
| East Midlands | £171,204 | -0.7% |
| Wales | £177,599 | -1.3% |
| West Midlands | £189,264 | -1.5% |
| North West | £174,305 | -1.5% |
| Yorkshire and Humber | £171,094 | -2.0% |
| England & Wales | £228,122 | -0.3% |
2009.
Read the full October 2010 edition (PDF, 10 pages)
About the Home Asking Price Index
The Home Asking Price Index measures the change in the prices sellers ask for residential property across England, Wales and Scotland. Today it is computed every month from around half a million advertised homes and is mix-adjusted, so a change in what happens to be on the market does not move the figure; earlier editions state the sample they were built from. Because an asking price is set months before a sale completes, the index runs around five months ahead of completed-sale measures such as the UK House Price Index.
Every edition in the archive, back to October 2006, is listed on the index page. How we measure the UK property market explains the listing data behind it, and today's figures by area are on house prices and rental prices.
Text and figures above are quoted from the October 2010 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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