House prices ‘remain stable’
House prices in England and Wales have remained stable for the second consecutive month according to the latest survey by the property website, Hometrack.
Hometrack reported that stability in the market was being caused by a slowdown in price falls in the southern parts of the country and a slowdown in the price rises in other regions.
The number of new properties entering the market increased by 2.8% in July whilst the number of buyer increased by 1%. Hometrack argued that the increases in supplies in the housing market have helped to maintain prices whilst demand remains subdued.
However, the group believes that the market ‘is looking more positive’. Hometrack reported that the number of sales in July increased by 5% compared to a rise of 4% in June.
Sellers are getting 94.5% of their asking price in July compared to 94.3% a month earlier. Hometrack reported that this was the first increase they have seen in 13 months.
John Wriglesworth, Hometrack’s housing economist, commented, “In terms of price changes, there has been nothing happening since December and the housing market remains as dull as ditchwater. Activity levels are, however, picking up slowly and better sales prices are being achieved. Demand growth is still not matching supply, but the market is certainly looking more positive.”
The group announced that it has reduced its forecast for house price inflation for 2003 to 3% from the 4% it expected earlier this year.
Hometrack’s survey revealed that 24 counties reported no change in house prices during July, whilst 16 counties reported rises, although the biggest rise was 0.3% in Mid and North Wales. Seventeen counties reported falling house prices with West Sussex, East Sussex, Surrey, Bedfordshire and Avon all reporting falls of 0.2%.
