Slow Start To Spring Market

[camem']

Slow start to spring market

Levels of market activity improve for a second month but pricing is still under downward pressure

By Richard Donnell, Director Research, Hometrack

House prices fell for the sixth month in a row over March with average prices down 0.2% over the month and the annual rate of growth slipping to +0.4% - the lowest level for 2 years.

Buyer registrations continue to rise...

Continuing last month's trend, March saw an increase in the number of buyer registrations (1.2%) and an 8% increase in sales agreed.

But it's still a slow spring market...

Although this is all encouraging news, these findings should be put into context as the growth in demand over the last two months is just a third of the level seen in previous years.

Transaction volumes are still low...

The reality is that the majority of households simply do not need to move and this has resulted in major declines in market activity over the last six months.

Hometrack continue to forecast a 17% drop in transaction volumes over 2008.

Across the country...

The latest survey shows that prices were down across 28.8% of postcodes, the majority of which were in London and the South East where values have been slowing off a high base.

This is a trend that could continue in London as the supply of homes for sale here is rising faster than levels of demand. London saw a further increase in the supply of homes for sale n March rising by +8.4%, while demand only grew by 2% this month.

Elsewhere, market conditions were weakest in the East Midlands, Wales and the West Midlands where selling times are increasing and the proportion of asking price being achieved is below average.

[Dubai]

More mumbo jumbo "statistics" to neuter experience. "Ooh, my house price rose 0.25% last month". What a load of shite.