Published: Mon, July 17, 2017
World | By Paul Elliott

Dampened prices but housing market activity up - Rightmove

Dampened prices but housing market activity up - Rightmove

They fell in Greater London by 2.4% month on month to an average of £634,321 and are down by 1.4% compared to a year ago.

Rightmove found the number of sales agreed is up by 4.6% in June 2017 compared to June 2016, and the number of sellers coming to market is also up on the same period a year ago, with a 7.6% increase in fresh choice.

The rate of growth was up from 1.8% in June, while a monthly fall of -0.4% in June became a minor increase of 0.1% in July.

Asking prices in England and Wales fell by 0.4% last month, the first fall in June since 2009 and the first monthly decline of 2017, according to the latest index figures.

Rightmove director Miles Shipside said high demand would continue to support house prices in the coming months but that a squeeze on consumers' purchasing power would limit the rate of price rises.

As the fundamentals of the housing market remain good, the online property experts said, this had led to the number of sales agreed numbers remaining nearly identical to those in 2016, with many parts of the country seeing as high a proportion of properties marked as sold than at any time in the last seven years. "Low unemployment, low interest rates, strong demand and historic undersupply of homes are mitigating any wobbles in confidence and as a result almost half the properties on the market, over 45 per cent, have sold signs slapped across them" he says.

Murphy explained the United Kingdom property market is seeing the highest levels of stock sell-through since Rightmove started to track the metric - which is means demand for property remains strong with consumer confidence largely undaunted, and underlying market fundamentals remaining robust.

He added: "Although the current parliamentary situation is far from strong and stable, we're already seeing elections blues sidelined and the market return to a semblance of normality now that some of the dust of political uncertainty has started to settle".

"We saw a similar hangover from the European Union referendum, in which the market took a good month or so before kicking back into action".

Asking prices for residential properties in England and Wales have remained broadly unchanged over the past month, as price sensitive homebuyers remain cautious, due to a weakening of the economy as consumers feel the pinch of rising inflation, new figures from Rightmove show. On an annual basis asking prices for this sector of the market are 3.8% ahead of where they were in July 2016.

"However, the ongoing lack of housing supply remains a fundamental issue", says Jeremy Duncombe, Director, Legal & General Mortgage Club.

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