Middle classes 'hammered by house price crash'
Tuesday, 17 March 2009 10:21 AM
Middle class homeowners are being hit hardest by the property slump.
The National Association of Estate Agents (NAEA) property price index shows family three and four bedroom homes saw their value drop in February.
However, prices rose for small two-bedroom homes and the top of the market.
NAEA also warned sellers were continuing to be overoptimistic in their asking prices.
Peter Bolton King, NAEA chief executive, said: "The NAEA's property analysis reveals in depth what is happening in the housing market - and show how hard middle class families in three bedroom homes are being hit by the property slump.
"Smaller houses actually saw their value increase - this suggests that people who are buying are picking up smaller houses than they may have done previously, possibly because they can only get smaller mortgages. It may also reflect a trend of downsizing.
NAEA also warned sellers were continuing to be overoptimistic in their asking prices.
"Sellers are also consistently over-pricing their properties across the market, and inevitably having to accept a cut in price in order to achieve a sale," Mr Bolton King said.
At the top of the market, executive properties were worth more in February than in January, suggesting "not only that the very rich can still afford a high end property, but that with plummeting interest rates are now perhaps more tempted to put their money into bricks and mortar," Mr Bolton King said.
NAEA Monthly Index of Property Prices
Average two-bedroom flat:
. Asking Price February 2009: £136,247
. Asking Price January 2009: £135,962
. Selling Price February 2009: £124,727
. Selling Price January 2009: £122,823
Average three-bedroom terrace:
. Asking Price February 2009: £168,744
. Asking Price January 2009: £171,794
. Selling Price February 2009: £156,755
. Selling Price January 2009: £155,778
Average three-bedroom semi-detached
. Asking Price February 2009: £205,546
. Asking Price January 2009: £215,174
. Selling Price February 2009: £190,922
. Selling Price January 2009: £198,446
Average four-bedroom detached
. Asking Price February 2009: £316,228
. Asking Price January 2009: £339,072
. Selling Price February 2009: £297,008
. Selling Price January 2009: £310,065
Average high end executive property
. Asking Price February 2009: £650,220
. Asking Price January 2009: £608,389
. Selling Price February 2009: £591,111
. Selling Price January 2009: £531,896
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