Monday, September 1, 2008

Hometrack – latest survey + property table

House prices fall as buyers scent bargains

House prices fell for the eleventh month in a row in August, in the latest sign that the housing slump is deepening. Average prices dropped by 0.9pc over the month, following a 1.2pc slump in July, according to Hometrack. Its measure of house price inflation dipped to 5.3pc year-on-year, the lowest level since the survey began. However, buyer interest is growing on the back of lower prices and reductions in the cost of mortgages, according to Hometrack director of research

Posted by jack c @ 09:49 AM (935 views)
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4 thoughts on “Hometrack – latest survey + property table

  • FROM TODAYS FT

    House prices fall for eleventh consecutive month
    Story by: Gemma Westacott Magazine: FTAdviser Published Monday , September 01, 2008
    House prices fell for the eleventh month in a row in August, dropping another 0.9 per cent to the lowest level since the survey began in 2001.

    According to the latest research from Hometrack, the fall in average house prices in August to £167,000 has pushed the average prices down by 5.3 per cent on a year-on-year basis.

    However, the drop in August was not as severe as the 1.2 per cent fall recorded in July.

    Hometrack’s director of research Richard Donnell said: “When the market turns it can take as long as 24 to 36 months for prices to reach realistic levels and we are now well into this process.

    “We may well start to see a moderation in the rate of monthly price falls, however, with ever growing uncertainty among households over the broader economic outlook the current re-pricing of housing still has some way to run.”

    Hometrack said average prices were down across more than half (58 per cent) of the country in August for the fifth month in a row, although the overall monthly fall was lower.

    The proportion of asking price being achieved is also starting to level off and now averages 90.7 per cent. This is down marginally over the last month but well down on the 95.7 per cent recorded in spring 2007.

    Hometrack warned that as long as this figure remained below 93 per cent price falls were likely to continue.

    Donnell again: “While demand remains weak with continued falls in new buyer registrations over August, a small but growing proportion of agents are reporting some improved signs of buyer interest on the back of lower prices and a modest reduction in the cost of mortgages.

    “This trend could well become more evident over the autumn as we continue to move towards more realistic levels of pricing.”

    The South West recorded the largest fall in average house prices in August, dropping 1.1 per cent to £168,600, followed by a 1 per cent fall to £148,000 in East Anglia.

    By comparison the West Midlands and Yorkshire and Humberside recorded the smallest reductions of 0.6 per cent to £138,000 and £121,600 respectively.

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  • Scenting bargains when prices are still well above trend and continue to fall? Unusual notion of a bargain.

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  • Scenting bargains when prices are still well above trend and continue to fall? Unusual notion of a bargain.

    Quite. I’m not even sure the buyers are out there – too much uncertainty.

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  • The buyers are out there. Im one of them, although my interpretation of “scenting a bargain” is to offer 30-40% off asking price and telling them that they are lucky to get any offer at all in the current economic climate ….. And Im seeing a few houses in my area in the 500k-£1mill price range either going under offer or being sold subject to contract. Although at what percentage of asking price I dont know. I read somewhere that in one sense now is the time to look – distressed sellers will have gone bust by next Spring, and non-distressed sellers will have withdrawn from the market by then, to wait out the recession.

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