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Hometrack -home Prices Stall For Second Month

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Home prices stall for second month

http://money.aol.co.uk/home-prices-stall-f...930191509990001

Last Updated: Sunday, 30 September 2007, 23:17 GMT

- Search: House prices stagnate

House prices stagnated for the second month running during September as both buyers and sellers sat on their hands, new figures show.

The average cost of a home in England and Wales remained unchanged at £176,300 during the month, while the annual rate of growth fell back to 5%, down from a recent high of 6.8% in April, according to property group Hometrack.

But the group said despite falling levels of demand and declining sales volumes, a lack of 'saleable' homes coming on to the market was preventing prices from falling.

Instead it said the recent credit crisis had created a period of inertia in the property market, with buyers and sellers both delaying decisions until the outlook was clearer.

Overall prices fell in just four postcode areas across England and Wales during the month, while they rose in just under 9%, the lowest level since November 2005, and remained unchanged in the rest.

Richard Donnell, director of research at Hometrack, said: "Turmoil in the financial markets has created a period of inertia in the housing market with buyers and sellers unwilling to commit until the outlook becomes clearer.

"As a result, agents reported a 2.7% drop in the number of sales agreed over September, following a 1% fall in August."

He added that demand from potential buyers had also fallen by 4.5% during the month, meaning demand had dropped by around 11% since June.

He said: "This level of change in demand is not unusual around Christmas and the New Year but the last time there were three consecutive monthly falls in demand was in the second half of 2004.

"This was the last time that higher interest rates and weaker market confidence impacted on the housing market."

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a lack of 'saleable' homes coming on to the market was preventing prices from falling.

This is the stall. Demand has dried up but sellers still think their home is "worth" the EA valuation so won't drop the price.

I give it a couple of years of flatlining before reality bites.

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This is the stall. Demand has dried up but sellers still think their home is "worth" the EA valuation so won't drop the price.

I give it a couple of years of flatlining before reality bites.

yes that was very interesting - especially when the sellers drop their asking price 5% to attracta buyer. Should show some scary figures

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But the group said despite falling levels of demand and declining sales volumes, a lack of 'saleable' homes coming on to the market was preventing prices from falling.

EA's and associated market players are going to get it in the nuts. Enjoy those high prices!

Anybody looking to trade up will now have to ask themselves whether they can REALLY afford £1000's - £10,000's to do so in stamp duty, moving costs, EA fees, legal fees, HIPS, etc.

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I wouldn't pay any attention to anyone who uses words like inertia without actually knowing what they mean.

"Inertia is the property of an object to remain at constant velocity unless acted upon by an outside force", sounds about right. <_<

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Guest Popalot
This is the stall. Demand has dried up but sellers still think their home is "worth" the EA valuation so won't drop the price.

I give it a couple of years of flatlining before reality bites.

I don't think they will have the luxury of that amount of time. Everything else is converging....expect Crash headlines by Christmas and the precipitous falls to start in January when people are truly skint.

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Guest AuntJess
I don't think they will have the luxury of that amount of time. Everything else is converging....expect Crash headlines by Christmas and the precipitous falls to start in January when people are truly skint.

Yes. I am with you on that one. :D

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And the Swiss banks are generally reckoned to be amongst the most cautious and conservative.

I wonder how many of the 1500 job losses will be at Liverpool Street? At any rate, probably much less bonus cash to put into BTLs or London property......

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