Miles Shipside from Rightmove said the stark choices facing home owners and estate agents as we go into 2005 with the housing market have all but seized up. It’s a matter of cut prices now or run the risk of a longer-term stagnation in 2005 as buyers still find home ownership too expensive. Rightmove added that a rate cut by the Bank of England could also provide a welcome boost to the market.
Rightmove exlplained asking prices are down a meagre 0.3%, or less than £600 – not enough to tempt buyers back who await a meaningful price correction or cut in borrowing costs to improve affordability
It added demand and supply are now severely out of kilter; time on market continues its sharp upward trend since June; estate agents are set to enter 2005 with stock levels over a third higher than in January 2004 and that the 'life is being squeezed out of the housing market’ by soaring house prices and five interest rate rises.