30 June 07 Housing Slow Down Gains Momentum Over June
Faltering demand and rising supply driving the slowdown
The monthly rate of house price growth halved overJune with average prices rising by +0.3% compared to +0.6% in May and a recent high of +0.8% in March 2007. The annual rate of house price growth also slowed to 6.4% a trend that is set to continue on the back of rising levels of supply and weaker demand.
Slowdown is being driven by a mis-match between supply and demand...
An imbalance between supply and demand resulted in price rises over June being limited to just 28% of the country - down from 44% in April. The number of new properties coming to the market (12.4%) continues to exceed the number of new buyers looking to purchase (+5%) with the volume of homes coming to the market doubling over the month.
London is witnessing a clear turnaround in market conditions...
Over the last 18 months London has been the major driver of headline growth but the capital is now witnessing a clear turnaround. The region saw the largest decline in demand over June (-3.5%) compared to a national average of +5% and an increase in supply (10.9%). That said prices still rose by 0.7% over the month, down 1.3% in May.
Elsewhere the year on year rate of growth remains subdued...
Price rises of less than 2.5% were seen in six out of the ten regions, primarily those away from the south of the country where previous interest rate rises have already impacted on the market.
| Headline statistics | Jun-07 |
| Weighted Overall Average Price | £176,100 |
| Weighted Overall Average Price Change | 0.3% |
| Change in number of new properties listed | 12.4% |
| Change in no. of sales agreed | 6.1% |
| Sales price as a % of asking price | 95.6% |
| Change in number of new buyers registered | 5.0% |
| Time taken to sell (weeks) | 6 |
| Average number of viewings per sale | 10.8 |