Monday, July 30, 2007

Hometrack survey shows HPI grinding to a halt

Home prices stall as rate rises bite

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.'

Posted by little professor @ 02:19 AM (569 views)
Please complete the required fields.



5 thoughts on “Hometrack survey shows HPI grinding to a halt

  • Whiteknight says:

    Somebody check the seasonality of the figures.

    If i recall what has happened in previous years is that the natural slowness in growth over the summer (lots of people on holiday) , Autumn & Winter (less good times to move) have typically been interpreted as slow downs.

    In these cases the MPC has stopped doing what is necessary (and on one occasion done the opposite of what was necessary) only to find out in the Spring surge that house price inflation and mortgage equity withdrawal are still going strong.

    This time it could be different due to the credit market blow out, but I would be extremely cautious about seasonality even though i dont have figures to hand.

    Reply
    Please complete the required fields.



  • Wahey!

    You would have been better off with your money in a savings account, where you can get 6.5% AER than in housing over the last year.

    Once a few more people understand that, I suspect this trend will accelerate.

    I suggest Kirtsy Allslopp starts chewing that musty felt hat now – it’ll take a while to soften up!

    Reply
    Please complete the required fields.



  • How convenient. Just in time for the MPC meeting coming up.

    Reply
    Please complete the required fields.



  • little professor says:

    Last July they rose 0.6%, which they described as disappointing. So 0.1% is more than just a seasonal variation.

    Reply
    Please complete the required fields.



  • bidin'matime says:

    Back to those 0.1% movements again – they must be getting nervous…

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>