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UK House Prices Situation: Lowest annual growth rate for
12 years
UK
House Prices Forecast: Up to 5% fall expected in 2008
Hometrack
Publish March Figures - Falls For 6th Consecutive Month
Hometrack's
House Price Survey for March was published this week,
revealing that house prices have fallen
for the sixth consecutive month, finishing March down
0.2% from February. This leaves the annual growth rate
at just 0.4% - the lowest level for some time.
Hometrack's
house price index is based on a monthly
survey of thousands of estate agents and surveyors across
England and Wales, meaning that it isn't dependent on
data from completed sales and should reflect the current
market state quite accurately.
Hometrack
forecast a 17% drop in the number of house sales in 2008
and March's survey noted that market conditions were weakest
in the East and West Midlands and Wales, where the proportion
of the asking price being achieved was below average and
time on market was increasing.
Land
Registry February Figures - No Change
The
Land Registry also published their monthly house
price index this week, showing that there was
no change to national average prices in February, although
there were some regional variations (annual change in
brackets):
•
West Midlands: 1.3% (3.4%)
• Yorkshire & Humberside: 0.5% (4.4%)
• East Midlands: 0.1% (2.7%)
• South West: -0.2% (4.1%)
• East: -0.2% (5.8%)
• North West: -0.3% (4.2%)
• North East: -0.3% (1.9%)
• London: -0.4% (10.6%)
• South East: -0.7% (6.0%)
• Wales: -1.1% (2.7%)
The
Land Registry's index is based on data from completed
sales, so while it includes cash sales it does lag behind
other indices, which are based on asking prices and/or
agreed prices.
Average
Gap Between Asking Prices & Sale Prices Growing
According
to the National Association of Estate Agents (NAEA), the
average gap between asking prices and sale prices is growing
and now stands at 4.5%.
That
means that a house with a £180,000 asking price
might be expected to sell, on average, for £171,900.
This
trend seems likely to get more noticeable if sale volumes
fall this year, as buyers become aware that in many cases
they are in a much stronger position than sellers.
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