Wanting (and waiting) to sell

If you’re trying to sell a house anywhere between Berwick-upon-Tweed and St. Ives, you could be waiting a rather long time.

That’s what Hometrack, which analyses the UK housing market, has concluded from their monthly housing survey. After a mid-2009 peak, the average time it takes to sell a property appears to be creeping up again, hitting an average of 9.6 weeks in October — and if you are looking to sell in Wales or the East Midlands, then that rises to the three-month mark (click to enlarge):

You can also see that there was a 0.9 per cent decrease in house prices for October, which is no surprise given the latest lending data from the Bank of England and the decline registered in the Nationwide house price index last week. Hometrack also reported a 2 per cent drop in demand — the fourth monthly consecutive fall — but, interestingly, a 1.9 per cent growth in supply. As Richard Donnell, director of research, says:

The mismatch between faltering demand and increasing supply looks set to continue, while the re-pricing process is likely to be drawn out into the first half of 2011. A stand-off is beginning to emerge between buyers waiting for prices to fall further and sellers being unrealistic on the price they’re willing to accept. We expect a modest adjustment in prices rather than a return to the double digit falls seen in 2008. Transaction volumes, already at low levels, are set to fall further.

Which could see some sellers wait a long time.

**For an excellent guide to UK house price indices, see here.

Related link:
Anyone for a double-dip in UK house prices? – FT Alphaville