More proof of house price slump
Estate agents: seeing fewer buyers registering
Monday, 28, Jan 2008 11:01
The latest house price data has provided yet more evidence of a slump in the residential property market.
The Hometrack index, published today, shows the average cost of a home in England and Wales dropped by 0.3 per cent in January.
This is the fourth fall in prices in four months, according to the research organisation's figures, and comes after prices fell by the same amount in December 2007.
Other findings in the survey suggest the weakening market is set to continue through the next few months.
According to Hometrack, the amount of buyers registering at estate agents dropped by 11.5 per cent this month following falls in December and November.
It was not good news for sellers, either. Most, on average, managed to receive just 93.5 per cent of the asking price on their property in January - a reduction on 2007 figures.
And it is taking longer to sell homes. In January the average time taken was 8.5 weeks - the highest lapse in time recorded since the Hometrack survey began in 2001.
Hometrack's disclosure is the latest of many reports showing a house prices are almost definitely cooling.
Howard Archer, chief UK economist for Global Insight said it "added to mounting evidence that the housing market is slowing markedly and is set to continue to do so".
He predicts house prices will fall by three per cent in 2008.
But he added: "We believe the downside for house prices will be limited by the rising number of households, an overall shortage of supply, high employment, significant interest rate cuts over the next 18 months and the fact few vendors are having to sell for 'distressed' reasons."
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