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Agreed house sale prices rise again

Agreed house sale prices rise again

Category: Mortgages

Updated: 07/08/2009
First Published: 07/08/2009

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 It is now over 6 months old so the content may be out of date.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 house price of property transactions completed in England and Wales increased in July for the second month in succession.

While the rise was a small one at 0.1 per cent, it has taken the average price of agreed property sales to £199,903 – a level last seen way back in February 2006, according to Academetrics.

It is the third month in a row that average prices have not tumbled, following months of decline, providing further evidence that the mortgage market is beginning to pick up.

The number of transactions completed also went up, and have now increased each month since recording a low of 27,000 in January to reach 47,000 in June.

"The evidence suggests that the market is bottoming out," said Dr Peter Williams, chairman of Acadametrics.

"However, the price gains achieved in completed transactions are very small and the potential for further reductions remains, not least because of the acute under-supply of mortgages."

It follows yesterday's announcement by the National Association of Estate Agents that the market has strengthened in the last 12 months.

This week also saw the Royal Institution of Chartered Surveyors change its forecast for the housing market in 2009, revising its prediction from losses of 10 to 15 per cent to a slight gain.

Furthermore, house price indexes from Halifax and Nationwide found that house prices have risen during July.

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