The number of homes sold in September across the UK held up last month with 77,000 changing hands. That’s a rise of 13% on the previous year but still contrasts with the 150,000 sold in the same month back in 2006.
Supply and demand was back to the long term average helping to keep prices stable across much of the country. There are 11 months of inventory at current rates of sale, fall through and re-supply. The chances of selling in the first month of marketing is around 9% and if left for a year a property has a 45% chance of selling which is exactly the long term average. In September 2006 the chance of selling in the next 12 months was 58%.
Asking prices last month rose by 3.5% according to Rightmove despite actual selling prices falling by 0.3%. Sellers appear to have decided that it’s better to ask a full price and expect to be knocked by buyers than to quote and hold out for a realistic price. Around a third of all homes on the market have had a price reduction with even the higher value property outside London now starting to suffer. I’m seeing examples of million pound properties being trimmed by 20% or more.
Last month the most expensive sale recorded by the Land Registry was one for the cheaper apartments in the prestigious One Hyde Park development in Knightsbridge which sold for £25m. The cheapest sale was another flat this time in Oak Street Elland in Calderdale West Yorkshire which sold for just £15,000.
