According to haart, the average house price in the capital decreased by just 0.20% last month, falling from £248,642 in June to £248,155 in July. House prices are predicted to fall a maximum of 5% further this year, having already fallen 14.5%. haart is predicting a further fall of only 5% for the rest of the year, before prices begin recovering in the first half of 2009.
Russell Jervis comments: “Conflicting house price figures are being published all the time, but estate agency data, such as the haart London index, shows what is actually happening on the ground in real-time and these are the numbers we should be paying attention to. There are clear indications that the market is over the worst now, as prices have dropped by over 14% so far this year. At most, we are expecting a further 5% fall in 2008.”
Vendors achieved an average of 95% of their asking price in July, the same as in June, indicating that, although a further small adjustment in prices is needed, vendors are becoming more realistic.
Russell Jervis concludes: “Vendors are beginning to accept that prices have dropped and that only realistically priced properties will sell. It will remain a buyer’s market for the rest of the year. As a result, it is a great time to purchase a property and move up the chain.”
First-time buyer enquiry levels have risen for three months running, making up 20.5% of enquiries, the highest in 11 months, as they look to capitalise on the lower prices and lenders show the first signs of relaxing their lending criteria.
