Hometrack Points to Summer Lull

Hometrack has found that house prices fell by -0.2% in July, down 3.7% over the past twelve months, putting the average house price at £161,300 down from a peak of £167,700 in June last year. Despite these further house price falls, Hometrack also found that activity in the market continues to increase, with sales agreed rising 3% in the past month. Although the number of buyers coming onto the market is falling, though many agents maintain that those who are looking are extremely serious about buying. But with fewer buyers and a continued increase in properties available, Hometrack says, the resulting oversupply means that it is still a buyer?s market and prices will inevitably decrease again in the coming months. The amount of time it is taking to sell also increased in July, to an average of 7.8 weeks, although desirable properties are moving extremely fast. Only one county saw prices rises this month: Berkshire, as Cambridge, Kent and Mid Wales remain steady. The largest falls came in Hereford and Worcester, the West Midlands and Dorset, Hometrack also reported. ?The market is showing no signs of recovery,? said Hometrack?s Housing Economist John Wriglesworth today. ?However the key factors that determine the health of the market remain positive: high employment, rising household incomes; low interest rates. What seems to be missing is simply buyer confidence. ?Hopefully once an interest reduction has occurred, confidence will be given a boost. Meanwhile sellers must accept lower prices if they wish to secure a buyer.?