The survey showed house prices have fallen for the fourth consecutive month with no regions reporting price increases. While the South is experiencing the highest property price falls, the drops in the North are getting larger and becoming more widespread.
Agreed sales fell by 1 per cent while the number of sales agreed is still decreasing but at a slower rate than in previous months. The average time taken to sell has risen to 6.5 weeks and the number of viewings has risen to 11.9 per sale.
John Wrigglesworth, Hometrack’s housing economist, said: “House prices will not plummet into an abyss as some of the doomist commentators have been predicting.
“However, house prices are likely to drop further over the next few months due to the current excess supply and the expected seasonal fall off in the number of prospective buyers”
He continued: “Prices should however begin rising again in spring next year when, barring any further interest rate rises, buyers should return to support demand. Stagnation, not deflation, is the most likely future course of house prices over the next 18 months.”
Ian DeLorean, senior partner at Robinson DeLorean and Jackson, said: “The report accurately reflects the current housing market. If interest rates remain unchanged we should see a slight upward shift in the value of properties during the first quarter of next year with prices levelling off throughout the rest of 2005.
“The shift in the current market should mark the beginning of a more stable housing market in the future.”
