Friday, Dec 15, 2006
New house prices rise 1.9% in 2006
Firstrung: SmartNewHomes.com records a 1.9 percent annual rise in the cost new homes
November has seen the biggest annual price growth in new homes since April, with the average price of a new home up 1.9 per cent on the price recorded at the same time last year. This year's annual price increase has bucked the trend experienced over the last two years, which has seen the average price of a new home fall towards the end of the year, an indication that the new homes market is set for a positive start to 2007. The price of a new home has risen 1.4 per cent over the last month, reinforcing the return of a positive trend for the new homes market at a traditionally quieter time of year. This month's decision by the Bank of England to hold interest rates should ensure a positive start to 2007
Posted by converted lurker @ 06:41 PM (167 views) Add Comment
5 Comments
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2. Cheekie Charlie said...
This is an interesting statistic. Why do new build homes lag so far behind the supposedly 8-9% average increase as reported by most HPI statistics? Indeed if the Home (England & Wales) figures were to be believed which excludes property's under £30000 and over £1000,000 the annual increase to date would be 0.5%. Having said that when you take into account modern building techniques of concrete brick, chipboard joists, plastic plumbing/drainage, smallest living area in EU, built next to slums, its not that suprising is it!
3. sold 2 rent 1 said...
I have just finished Fred Harrison's book "Boom Bust"
The standard property cycle appears to be
7 years moderate HPI
Mid-cycle slowdown
5 years even faster HPI
2 years of crazy HPI (winner’s curse)
4 years of price declines
We appear to be in the winner’s curse phase now.
I guess this phase started in Q1 2006.
My predictions for 2007 are:
Stock markets to hit new highs in Q1 2007 and possibly in Q2 as well
UK IR to rise in Feb and possibly May
HPI to hit 12-15% in Q1 and Q2 and peak in the summer if the 2 IR rises come through. If they don’t then the peak may later
4. paul said...
STOP THE PRESS.
Idle cash sitting in bank accounts has seen annual growth NEARLY 300% more than new homes!
Quick, everyone get a bank account and put some cash in it!
It's the investment OF THE CENTURY!
5. Enuii said...
Interesting statistic but beautifully vague. As developers increasingly turn to lifestyle properties at the bottom end of the housing market i.e. large numbers of 1/2 bed flats (sorry apartments) I can see this figure being slightly misleading.