Owner-occupier market 'stagnating'

Asking prices for newly-listed properties continue to climb even as the stock of unsold homes rises in kind, Rightmove has said.

Issuing its monthly house price survey, the property website said that the number of unsold properties had reached its highest level for this time of year since it began keeping records in 2002.

It noted that the average estate agent now has some 67 unsold homes on its books - significantly up on 56 just one month ago - even as asking prices rose a further 0.8 per cent to £239,655

Analysts suggest the contrasting figures depict a stalemate that is emerging in the market, with sellers refusing to temper expectations for house price growth and buyers becoming increasingly jittery about negative equity.

All in all the report paints a worrying picture of the owner occupier market, with Miles Shipside, commercial director of Rightmove, admonishing sellers for inviting greater difficulties further down the line.

"In the current market, sellers should price below their competition to achieve more interest now and avoid a larger price-drop later in the year," he advised.

Despite the current property downturn, asking prices are on average some five per cent higher than they were one year ago.

News posted on 31st March, 2008