31 August 07 Lowest rate of monthly house price growth for 20 months
Market heading for tougher trading conditions over the autumn
House prices were unchanged over August, the lowest rate of monthly growth for 20 months. This represents the fifth consecutive month of slower month on month house price growth. Weaker market conditions are generally to be expected over summer, but we believe this is further evidence of a more deep-rooted slowdown resulting from increased affordability pressures and more cautious buyers.
Achievable prices have moved downwards...
Hometrack's monthly survey which tracks a range of market indicators found that achievable prices rose across less than 10% of the country (9.3%) while achievable prices have moved lower across 7.4% of the market.
In London...
Of the limited price rises seen in August, most were seen in London. Over August the monthly rate of growth was just 0.1% down from a recent high of 1.8% in March 2007.
And the rest of the country...
While London was the only region to record a price increase over August, three regions recorded house price falls of -0.1% over the month, namely Yorkshire and Humberside, the North and South West.
Buyer confidence has been weakening on the back of increased affordability pressures over recent months but the turmoil in the global equity markets has added a new external dimension. If this continues it is likely to further undermine market sentiment which will drive weaker levels of demand into the autumn and further undermine the rate of house price growth.
| Headline statistics | Aug-07 |
| Weighted Overall Average Price | £176,300 |
| Weighted Overall Average Price Change | 0.0% |
| Change in number of new properties listed | 1.0% |
| Change in no. of sales agreed | -1.0% |
| Sales price as a % of asking price | 94.9% |
| Change in number of new buyers registered | -2.9% |
| Time taken to sell (weeks) | 6.6 |
| Average number of viewings per sale | 11 |