House sale prices fall slightly - Mortgages - News - Moneyfacts

News

House sale prices fall slightly

House sale prices fall slightly

Category: Mortgages

Updated: 10/07/2009
First Published: 10/07/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The average price of all property sales in England and Wales in June fell by just 0.3 per cent compared to May – the lowest monthly fall since April last year.

Properties were sold for £197,802 on average last month, compared to £198,802 in May, figures from Acadametrics have revealed.

The figures mean the housing market has reverted back to the same level as at the start of 2006, when average sales prices were just below £200,000.

Prices are now down by some £34,000 since their peak in February 2008, when transaction prices averaged £231,822.

While transactions are still historically low, the increase in property sales that have long been seen in the spring did take place in 2009, despite tight lending criteria.

In fact, agreed sales transactions increased by 43 per cent in May compared to February. In the last nine years, the average rise in the equivalent period has been 36 per cent.

However, the actual number of sales completed in May 2009 is markedly down compared to previous years. In the month approximately 40,000 transactions were completed; from 2000 to 2008, the average May sales numbers have averaged almost £104,000.

Dr Peter Williams, chairman of Acadametrics, commented: "Overall the evidence suggests that the market is bottoming out but the potential for further reductions remains, not least because of the acute under-supply of mortgages.

"Going forward this could be a serious downward pressure on the market. There is a degree of optimism in the air regarding the economy and the housing market at present.

"However, we know unemployment will continue to rise, that public expenditure which has helped underpin the market will be more limited going forward and that interest rates will almost certainly rise in late 2010."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!
 
Close