LONDON (MNI) – House prices were flat in April but were still 3.3%
lower than in the same month of 2010, according to housing intelligence
group Hometrack.
This marked the first time in nine months that the survey has
recorded no price fall.
Hometrack said that the relative strength of the London market
flattered the monthly number, with the survey recording price falls
across all other regions in April, Hometrack said.
The volume of sales agreed rose 8.0% after a 12.6% increase over
March as the market continues to recover from the seasonal slowdown in
December.
The proportion of sales meeting asking prices came in at 92.6%,
suggesting underlying pricing levels remain weaker than a year ago when
that proportion was 94%.
Commenting on the survey Hometrack Director of Intelligence Richard
Donnell says:
“While economic growth picked up over the first quarter, the
greatest risk to the housing market remains the threat of higher
interest rates. That said, fears of an imminent interest rate rise, so
prevalent at the beginning of the year have since abated and now seem
less likely at least in the near term.”
“The second half of 2011 is likely to emerge as a new phase where
rising supply will constrain any further improvement in pricing levels.
Weaker consumer confidence could also result in a slowdown in demand
which would exacerbate the pressure on prices.”
–London newsroom: 44207 862 7492; email ukeditorial@marketnews.com
[TOPICS: M$B$$$,MABDA$,MABDS$,MT$$$$]
