Rightmove forecasts 6% house price growth for 2013

The Rightmove house price index for September shows a 1.5 per cent decrease in the average house price from the previous month, though the firm has raised its 2013 forecast to six per cent.

The index shows the summer price slowdown has continued, with sellers who are unwilling or unable to wait for a price bounce dropping their asking prices by an average of £3,704.

The average property price according to the Rightmove index was £245,495 in September compared with £249,199 in August.

There was also a drop of nine per cent in the number of new sellers in the market to 96,330 – the lowest level since February.

Rightmove director and housing market analyst Miles Shipside says: ”New seller activity has fallen again this month and the lower volumes of properties coming to market over the summer have resulted in price drops that seem counter-intuitive given that buyer demand is holding up.”

The fall in new listings and a rise in search activity indicates an upcoming autumn price surge, with new seller asking for higher prices again in the last two weeks.

This imbalance in supply and demand has led to a raised 2013 forecast, from four to six per cent.

Legal & General Mortgage Club managing director Ben Thompson says: “Consistent with other recent reports it is good to see growth in the value of prices over the course of the last 12 months, as this will contribute positively to the sentiment of consumers that own their own home and hopefully enable more property to come onto the market for sale.

“However on the other hand, increases in prices will be less welcome for those living at home or in rented accommodation who are saving hard to buy their first home. Unless you are a homeowner, it would feel strange to celebrate another price rise.”