Sellers refuse to face reality

People selling their homes are refusing to face up to the reality of the credit crunch, according to the latest house price survey by property website Rightmove. Even in face of current market conditions home owners are asking unrealistic prices. The website warns that sellers should lower their prices now rather than later in the year to avoid further market stagnation. Many sellers are marketing for prices near peak boom figures but are finding that they are selling months down the line for ten percent below their asking.  Miles Shipside, commercial director of Rightmove says: "Most sellers coming to the market seem to be ignoring the increased competition from other unsold properties and the challenge buyers now face in obtaining a mortgage.” Rightmove have called for immediate action from the government to strengthen funding markets and ease the credit crisis to enable more people to get a mortgage.   The website points out that although the average asking price has increase by 0.8 percent in March the actual selling price rate has dropped from 5.8 percent to 5 per cent. Mr Shipside says: “Sellers should price below their competition to achieve more interest now and avoid a larger price drop later in the year." The excess of supply over demand and the toughening of lending criteria mean the situation is set to get worse.

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