Monday, July 30, 2007
Hometrack survey shows HPI grinding to a halt
The Hometrack survey released today agrees with last week's Nationwide survey, showing prices rose by just 0.1% in July. The annual rate of house price inflation dropped to 5.9 per cent from 6.4 per cent in June – the third consecutive month it has fallen. Richard Donnell from Hometrack said: 'It was inevitable that the steady increase in interest rates which began last year would ultimately impact on levels of housing demand right across the market. The slowdown has been accelerated by a rise in the supply of housing for sale over recent months. 'We expect demand to remain weak over the second half of the year as the impact of higher interest rates continues to feed into the market.'