Property asking prices fall, but activity is up

There are two conflicting reports out today that sum up the property market at the beginning of 2011.

The first is from Zoopla and shows that sellers are dropping their prices in response to a lack of sales at the end of 2010. Indeed they show that nearly four in ten houses that were on the market at the beginning of the year have had their original prices reduced, and that on average the drop is 6.6%. In London a third of properties have fallen in price, so slightly below the national average, though by a similar %.

The second report comes from the National Association of Estate Agents who in a poll of their members find that the number of registered house hunters with each of their agents is at its highest levels for 6 months, rising around 10% from December.

This seems to support our view, which is that alot of buyers sat on their hands at the end of last year with all the economic uncertainty, yet agents and homeowners continued to price their homes too high.

Now it seems that sellers are being more realistic, and buyers more enthusiastic.

I have a feeling that the market in 2011 will be much better than many predict, with fairly stable prices and turnover growing as confidence and the weather improve!