So far in 2010, sellers are more confident and buyers more interested, Rightmove has commented in the first house price report of the new year.

Asking prices have risen by 0.4% since December, Rightmove said adding that it predicted a burst of activity and asking price gains in early spring, continuing the
heightened level of activity seen during 2009.

The early signs are that the factors that led to the unexpected buoyancy in 2009 are continuing. In addition, the impending election, a traditional dampener of market activity, is perhaps having less of a negative effect than usual on home-movers’ intentions. Early findings from the latest Rightmove Consumer Confidence Survey (to be released on January 22nd) would seem to support this.

Gathering the views of more than 30,000 home-movers, the survey reveals that about 70% of those who intend to move in the coming year do not believe that the election will affect their plans. While their opinions may change when the details of any future government’s austerity package become clearer, at present there are favourable circumstances which appear to be over-riding such longer term concerns.

In particular for those who have so far held off selling, the early spring may be the best opportunity to take advantage of the benign conditions that started to emerge during 2009 in spite of the ongoing recession.

These factors are still present and indeed show evidence of strengthening in sellers’ favour in the short term.

Miles Shipside, commercial director of Rightmove comments: “This rise in asking prices is an early indicator that new sellers in 2010 have the confidence to try for a higher price, as the index was lined up for a fall until the turn of the year.

We were expecting a drop of about 1%, as the majority of this month’s index falls in December, but the optimism of those early January sellers flipped it around. With home-movers setting new search records on Rightmove and a lack of property for sale, the decision of post New Year sellers to ask for a higher price could be a shrewd move. In spite of problems brewing for later in the year, there are definitely some of the ingredients for a buoyant spring, and a window of opportunity that sellers may wish to take advantage of”.

Low Supply
Rightmove also said the number of available properties per estate agency branch is now 63, its lowest level since January 2008. However, with many estate agency branches having closed, this figure is buoyed by the smaller number of
branches sharing the available stock.

With low supply, buyer interest remains. Rightmove recorded its busiest ever week, with 157,402,812 pages viewed between the 4th and 10th of January, up 26% on the first working week of 2009.

Mr Shipside added: “We estimate that we are now seeing the lowest number of properties on the market this century. Low stock levels are normally associated with house price booms and prices would have fallen considerably further but for the unique combination of circumstances that has kept stock off the market.

Buyers have little choice in popular areas, and while this continues sellers have a window of opportunity to obtain a higher price and a speedier sale. At present the limited supply of sellers is being outstripped by buyer demand but we predict there will be more forced selling later in the year.”

“This is the busiest ever start to a new year on Rightmove. As ever, this time of year sees potential buyers starting to search for their dream home. Those who held off from selling during 2009 are now researching what competition they face in their local area and assessing which agents might be best placed to sell their property”.