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House prices rise in June, but remain poor in the long-term

By Natasha Roberts

Date: Monday 18 Jun 2012

House prices rise in June, but remain poor in the long-term

The average asking price for new sellers has risen for a third consecutive month, although in the longer-term they have actually 'fallen considerably', according to property firm Rightmove.

When compared to Retail Price Inflation (RPI) over the same period, Rightmove says prices are actually 13% lower in real terms than they were in August 2007, immediately prior to the run on Northern Rock.

Currently, the national average asking price for June is £246,235, 1.0% or £2,476 higher than during the previous month, and 2.4% up on a year ago.

Miles Shipside, Director at Rightmove said: “While the national average price of property coming to market has set new records in each of the last three months, sellers should not break out the bunting in celebration until they have done their homework. It remains a very local market ruled by property style and location, and a few minutes study will reveal whether your property is hot or not.

"Agents report a two-tier market where those who can afford to price realistically are selling, while those who are equity-poor are struggling to sell as they often have to price up to make any prospect of a move viable. The traditionally more active spring window is closing and a summer of sporting distractions underway. Cutting your asking price to be cheaper than your competition and promoting your selling points better will be the key to avoid being an also-ran in the race to sell."

London is the only region where there has been an increase since August 2007, with asking prices 3.0% ahead of the national RPI.

The other nine regions of England and Wales have seen double-digit percentage falls in new seller asking prices when adjusted for inflation, with Wales the worst performing where real prices are now 24% lower than five years ago, Rightmove said.

The property website also warned that a spate of new listings could spark a decline in asking prices in the near future.

NR

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