Graph Of The Week: Falling Supply Is Good News For Sellers

We have an interesting graph this week from our research team showing the relationship between falling stock levels and rising prices.

According to our figures, stock levels in the sales market are down 21.7 since their peak in February and have fallen month-on-month since then.

Significantly, house prices stabilized in April and have been on the rise as supply has dwindled.

Andrew Smith, FindaProperty.com’s Head of Research, says:

“Regionally, there are some interesting trends. In London, for example,  the average asking price has risen to £427,886 which is 3.2 per cent higher than June and 5.7 per cent higher than a year ago.

“This increase in asking prices corresponds with falling supply – in fact supply in London is 35 per cent lower than the levels seen a year ago.  The South East, the South West and the North East have also recorded at least three consecutive months of rising sales prices and falling supply.

“On the other hand, regions such as Scotland are still struggling, with an increase in supply and prices still falling both month-on-month and year-on-year.”

It’s hardly surprising, then, that agents in some areas are reporting the return of gazumping and sealed bids for the best properties: after a long period of relentless price cuts, the balance is tipping back towards sellers.

It remains to be seen how long this state of affairs will last – but if I was a homeowner thinking about selling, I’d be getting an agent in to value my place as soon as possible to make the most of the current  intense competition for limited stock.

Need a valuation? Search for a local estate agent on FindaProperty.com.

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