Asking Prices Plummet in UK Housing Market

Real estate prices in the UK, particularly in the red hot market of London, may have finally reached a ceiling according to a report from British real estate data tracker Rightmove. The report shows that the asking prices for homes on the market dropped 2.9 percent from July to August as the market prepares for higher interest rates. That’s the largest decline in asking prices since Rightmove began tracking the stat in 2001. Despite the decline in asking prices, they’re still up 5.3 percent as compared with a year ago, but that’s well below the 6.5 percent year-over-year growth reported in July. August marks the third straight month in which asking prices fell. August is typically the slowest month in the UK housing market, but the decline was much bigger than anyone expected and points to sellers offering competitive pricing in order to move their properties while prices are at a peak. Further evidence that this is happening can be found in the fact that the number of homes listed for sale in August marks a 20 percent increase over the number listed in August 2013.