Rightmove does things the other way round from everybody else. Unlike Nationwide and Halifax, the property web site surveys asking prices. Some say this is a more reliable guide to the buoyancy of the housing market, as transaction based indexes can be distorted by what ever type of property is most popular. So if only the only types of housing that are selling are mansions the average house prices will rise.
But Rightmove tends to look at an increase in its index as a sign of bad times ahead, and a fall in its index as good news.
Earlier this year, for example, it heralded a 2.3% rise in its index as a sign that sellers weren’t being realistic. Then this morning it revealed a 0.8% fall in its index for December. But, Rightmove said the average number of unsold properties on estate agents books have fallen from 68 to 65, suggesting activating is picking up. It predicted a better year for prices in 2006.
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