Rightmove predicts further 10% drop in house values in 2009

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by Lin Freestone

Average asking prices for houses in England and Wales have now fallen by 10.2% from their peak in May 2008, representing a £24,692 drop. The figures are from property website Rightmove, which predicts that sellers will drop their prices by another 10% in 2009.

Rightmove anticipates that this further 10% price drop will hit the bottom of the market during the second half of 2009, and stay there for at least a year.

While figures show that market prices have fallen by 10%, feedback from estate agents suggests that actual sale prices dropped by 25%.

Asking prices fell by a further 2.3% during the four weeks to December 6, representing £4,829. This brings the average price down to £217,808.

Miles Shipside, the commercial director of Rightmove, has reported that some local markets have differed significantly from the average. Some sought-after properties have held all of their gains in extreme exceptions, while in other areas oversupply has depressed prices by as much as 50% for their peak.