The survey reported house prices have continued to fall over the last 14 months and the average house price now stands at £161,000, down over £6,000 from June 2004’s peak of £167,700. Over the last 12 months the market has decreased by 32.7 per cent, although there are some signs of encouragement.
Market activity for August has increased from July’s 3 per cent to 4.1 per cent and sales prices as a percentage of asking price has remained static at 93.4 per cent.
However the lack of first-time buyers is still a worry with figures indicating that the number has continued to fall, dropping in August by 0.5 per cent.
With the market seeing a decrease in buyers and a continued increase in the number of properties available, the result is a buyers’ market with prices likely to fall further during the coming months.
John Wriglesworth, Hometrack’s housing economist, said: “House prices have failed to respond to the recent interest rate cut and continue their stagnating negative trend which has now gone on for over a year.
“While transactions picked up a little this year, a further reduction in new buyers and a further increase in supply suggest no prospect of price rises in the near future.”
“Another housing boom is unlikely for at least the next three years. Over the short-term sluggish but stable is the most likely scenario,” he added.
David Bexon, managing director of SmartNewHomes.com said: “What we are seeing this year is the hangover following the frantic market rises of the past few years. Growth of that pace was unsustainable so we are seeing a steady correction to return average prices to more acceptable levels.”
