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House prices drop by £6,000 during the Olympics

Rightmove housing survey suggests Olympics to blame for dip in house prices

August 20, 2012

Asking prices dropped by 2.4% in the last month according to property website Rightmove.com. Although August is traditionally a quiet month, this is the biggest fall since Rightmove was established in 2002. This is particularly worrying considering we have been told that housing market has been improving since the crash in 2007 and 2008. The property site pointed to the Olympics as a “distraction” which has cooled the market even more than usual. It claims that there was a 50% dip in traffic at times of great significance such as Team GB’s “golden Saturday” (when Mo Farah, Jessica Ennis, and Greg Rutherford all won gold) and Usain Bolt’s races.

However the site warned that this may not be just a one off blip as long as tough economic times continue. Sellers will have to continue to work very hard to attract buyers and not be too disheartened by the continuing trend of sellers being forced to cut asking prices.

The 2.4% cut in average asking prices effectively knocked £6,000 off sellers’ property values. This reduction follows a particularly large drop in London in July where average asking prices fell by more than £17,000 according to the previous Rightmove survey