31 October 06 House prices rising at highest level for 2 years
Average residential values grew by 0.4% over October and are now 4.9% higher than a year ago representing the fastest year on year rate of growth for over two years.
The strong growth in house prices across London and the South East continues but Hometrack's October survey shows that that average prices rose across just a quarter of the country.
A lack of housing for sale combined with high levels of demand lie behind London's price growth although there are growing signs of a slow down - the average time taken to sell property for example remains unchanged for the third consecutive month - and similarly price rises are slowing for the fourth month in a row.
The number of properties coming onto the market in London has risen for the first time in 5 months but whether sellers' expectations on achievable prices are realistic remains to be seen.
Away from the South East house price growth remains limited but good levels of housing stock and cautious buyers lie behind this. Pricing levels are currently going through a prolonged period of re-adjustment - a trend likely to last well into 2007.
Hometrack expect prices to end, the year up by 5% with average growth in London likely to be closer to 12%.
| Headline statistics | Oct-06 |
| Weighted Overall Average Price | £168,600 |
| Weighted Overall Average Price Change | 0.4% |
| Change in number of new properties listed | -0.1% |
| Change in no. of sales agreed | 3.9% |
| Sales price as a % of asking price | 94.9% |
| Change in number of new buyers registered | 0.5% |
| Time taken to sell (weeks) | 6.5 |
| Average number of viewings per sale | 10.8 |