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Property sellers deterred by financial crisis

Monday, 22 September 2008 12:01 AM

The financial crisis has deterred new sellers from entering the property market, according to Rightmove.

As part of its monthly survey, Rightmove found for the first time in seven months, buyer choice shrunk as its average unsold stock index fell from 79 to 78.

New listings per estate agent are the lowest for September ever measured.

In addition, the downward trend continued as new sellers trimmed another one per cent off average asking prices, marking the fourth consecutive monthly drop in asking prices.

Miles Shipside, commercial director of Rightmove, said: "The housing market is on its knees and will remain so until financial institutions address the disastrous state of the mortgage funding markets. We are now seeing the lowest level of new sellers for years.

"There's a baseline level of activity from those that have to sell, but beyond that, discretionary sellers are increasingly scarce.

"While this market provides a good opportunity to trade up, it requires a degree of bravery in the face of the ongoing turmoil in the financial markets."

Rightmove said with the likelihood of an upward trend in repossessions over the coming months, the higher proportion of forced sellers will increase downward pressure on prices until they have worked their way through the system.

Agents are already reporting that many of the deals currently being completed involve a seller with a particular need to sell, tending to encompass properties that have been part-exchanged or are on the market due to death, divorce or debt, the property website added.

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