30 September 07 House prices static over September
Lack of supply underpins prices despite weakening demand
House prices remained unchanged over September - the second month in a row that this has been the case. The year on year rate of growth however has slipped back to 5.0% from a recent high of 6.8% in April 2007. Despite falling levels of demand and declining sales volumes, a lack of 'saleable' homes coming to the market is acting as a support to prices.
Achievable prices...
Achievable prices moved lower in 4% of postcode areas while price rises were limited to 8.6% of the country, the lowest level of price rises since November 2005. While there is evidence that asking prices have slipped back in some markets over recent weeks, achievable prices remained unchanged across the vast majority of the market.
And sales...
Over September, agents reported a 2.7% drop in the number of sales agreed. The volume of applicants registering with agents also fell by -4.5% over the month. This is the third month in a row that applicant numbers have fallen with an 11% decline in demand since June.
Supply has also tightened...
There has been no increase in the supply of homes for sale between June and September 2007 and while demand and sales volumes look set to remain weak over the rest of the year, a lack of saleable properties look likely to support achievable prices.