Average asking prices fell by 0.4% in June – the first fall in four months according to a new report

A fall in asking prices by 0.4% was recorded by Rightmove in June, the first fall in five months, said the property website. Still, asking prices are still up 6% overall in 2009, fuelled by a shortage of saleable property and the equity rich calling the bottom of the market.

Supply and demand differ widely between the north and the south of the country, according to the report, as supply in the south east becomes increasingly limited (down over 50% on this time last year), which buoys prices, as opposed to the north which has over 33% fewer properties, serving to keep prices more depressed.

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Miles Shipside from Rightmove was quick to warn that the market is not yet back to its normal behaviour: ‘It is a mistake to confuse the upturn in enquiries and sales with a return to a more normal market. While conditions are much improved on the darkest days of last year, we are now starting to see some big distortions and wild swings due to the combined effects of recession and mortgage availability,’ he said.

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