UK NEWS
HOUSE-SELLING IS ON THE RISE BUT PRICES ARE DOWN
GOOD SIGN: Transactions are up
By David Pilditch
THE number of homes being sold has risen for the first time in five months but prices continue to slide, according to figures.
The value of an average property fell by 1.3 per cent this month while the number of homes changing hands rose by 5.4 per cent, according to property information group Hometrack.
Experts say the rise in transactions, the first since April, shows sellers are finally starting to accept lower offers. It is hoped this will restart the market.
Hometrack’s figures show an average home in England and Wales costs £163,200 – 7.5 per cent down on a year ago and similar to March 2006 prices.
A separate report predicts the average property will fall in price by £50,000 by the end of next year to 2004 levels. Prices look set to fall by a quarter from their peak, with an average home worth £157,058 by December 2009, the Centre for Economics and Business Research said last night.
It expects prices to be flat in 2010, before rising by 20 per cent during 2011 and 2012.
Richard Donnell, of Hometrack, said: “Weak confidence continues to undermine demand with a 35 per cent fall in the number of applicants registering with agents over the past six months. The supply of homes for sale has started to shrink in recent months…but the decline in demand means prices remain under downward pressure.
“The expectation of a recession and rising unemployment will further undermine demand and continued price falls are inevitable in the months ahead.”
The CEBR report said the steep fall in prices would come despite its expectations that the Bank of England would cut interest rates by at least one per cent before Christmas, with the base rate falling to just two per cent by next autumn.
The group said its view had not changed that house prices would outstrip rises in virtually all other asset classes over the long term due to the lack of supply.
There was also a slight increase in the average time a home is on the market to 11.9 weeks, while the price accepted dipped to 89.2 per cent of the asking price.
All regions reported price falls in the past month, with Greater London suffering the biggest drop at 1.6 per cent.
WELL WHAT A SURPRISE
27.10.08, 9:32am
Talk about statin the bl**din obvious. Looking at the website about the so called experts (I have deliberatly not mentioned the name), it looks as though they have only let out this information to self satisfy their own pockets and that of the thieving estate agents.
Anybody believing these lying, self appointed, thieving 'experts' must be one brick short of a full load.
• Posted by: KarlH • Report Comment
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