Downward Price Trend Ends as New Property Listings Hit Two Year Low

By Rightmove Group Ltd, PRNE
Sunday, January 16, 2011

LONDON, January 17, 2011 - The Rightmove ( House Price Index
for January 2011 is released today and reports that average asking prices in
the UK rose by 0.3% to GBP223,121.

This is the first increase in new sellers' average asking
prices for three months, following substantial falls amounting to 6.2% during
November and December. Activity in January gives some good indicators of
potential buyer and seller activity and a timely insight into the property
market patterns that may emerge in the year ahead. New stock levels this
month are at a two year low, and we expect this lack of property coming to
market to assist an upward trend in new sellers' average asking prices for
the next three months as it coincides with the run in to the spring moving

Shipside adds: "This month's price rise will come as a welcome
respite to prospective sellers as they had witnessed falls in five of the
previous six. However, it is a two-tier market. Those areas and property
types coveted by mortgage-ready buyers are likely to experience a supply
famine that will help underpin their prices this spring. Wherever those
deposit-rich choose not to wander, the on-going mortgage famine will ensure
sellers in those areas will remain buyer-hungry and will continue to see
downward price pressure".

As well as the slight rise in new sellers' asking prices,
record internet search traffic provides a welcome sign of pent-up buyer
demand. The first ten days of the year were Rightmove's busiest ever period
for website traffic, averaging 25m pages viewed per day.

Our December forecast of fewer properties coming to market in
2011 shows further signs of becoming reality this month. Average weekly
numbers of new listings are running at 9,159, compared to 10,125 measured in
the same period last year, and still well down on pre-credit crunch January
norms of circa 17,000.

Shipside adds: "The sustained period of record internet
property traffic we have seen at the start of the year shows that the
prospective mass market are searching avidly to find the right buy. But
everyone now sees less money in their wallet as a result of the VAT increase
and so stability in base rates for the majority of 2011 is very important if
we are to avoid the de-stabilising effect of increased repossessions and
encourage greater transaction volumes."

For further statistics and to download the Rightmove January2011House
Price Index please visit - search for local house
prices ( at

Rightmove Press Office,, +44-(0)207-087-0700

Rightmove Press Office, press at, +44-(0)207-087-0700

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