Asking prices cut 2.3% in December

Asking prices fell 2.3 per cent in December, as sellers start to realise the best way to secure a deal is to cut prices.

The Rightmove house price index puts the average house price at £217,808 – a drop 6.3 per cent in the last year.

Asking prices are now £24,692, down 10.2 per cent on their May peak.

Meanwhile estate agents are reporting sale prices are 25 per cent down on their peak. And in some areas drops of 50 per cent are expected – but some in-demand neighbourhoods should stand up.

Rightmove now predicts a bottoming out of the property market in the second half of 2009 – with a further ten per cent drop to come.

Miles Shipside, commercial director of Rightmove, explain 2009 could be "the year of the deal" for those with willing and able to buy.

"Desirable property you would not normally see in a forced-sale scenario will be available at prices that are exceptionally attractive for anyone in the position to buy their dream home," he said.

"Sadly, the best buys will be at the expense of personal distress, but to the gain of the cash-rich who have been sitting on the sidelines."

He added: "What is certain is that the traditional mainstream buyers will be the ones left sitting on the sidelines watching these quality deals pass them by, due to a continued lack of low deposit mortgage finance."

Mr Shipside put forth that while 2009 will be the year of the property deal, 2010 will still be a buyer’s market.

But buyers should remember, a home is a long-term investment, so catching the bottom of the market is not so important.

"Remember, the majority of property buyers are looking for a home where, on average, they will spend seven happy years, instead of looking to make a quick buck," Mr Shipside said.

"Rather than putting your life on hold, buying the right property in 2009, at what is potentially within ten per cent of the bottom of the market, may be a sensible move for those looking to enjoy their next home for a good number of years."