100x100_fitbox-tos_sold_board2.jpegRightmove has produced a report from its measurement of 143,883 asking prices - circa 80% of the UK market. The properties used in the report were put on sale by estate agents from 14th January to 10th February 2007 and advertised on Rightmove.co.uk.

Price increases of 0.9% in Feb 

This month's report shows that 143,000 newly marketed properties have increased in price by just 0.9%, by far the lowest February figure for the last 5 years. Since Rightmove started its House Price Index five years ago average asking prices have always increased byover 2% in February.

Estate agents continue to report good levels of sales activity, and the report data shows average property for sale per estate agency branch at a 3-year low for this time of year.

This, in conjunction with a speeding up of stock turnover since the New Year, has led to a fall in time on the market, from 88 to 78 days. This combination of factors would usually generate a rise in prices similar to previous years.

The contrary statistics point to the shock January interest rate rise knocking sellers' traditional New Year optimism.

Pace of house price growth slows 

Miles Shipside, commercial director of Rightmove comments: "The shock tactic of one unexpected rate rise early in the year appears to have had the desired effect. February price rises are normally two to three times higher than we have measured this month.

With three interest rate rises in the last six months and the looming threat of another, it looks like we have finally reached the point where the market is highly interest rate sensitive. We are at a crossroads, and the path taken by those in charge of interest rate policy will dictate the direction of the housing market in 2007".

Price gains continue to be consistent in the south of the country, though the pace appears to be slowing. Buyer demand is still good, but appears to be resisting overpricing apart from the southern hotspots.

With prices still at record levels and upwards interest rate speculation, sellers are showing signs of realising that buyer' resources have a limit.