Property prices shows signs of rebound

26 August 2003
The property prices have shown signs of rebounding despite recording the third consecutive month of no change, according to the latest survey.

The property website, Hometrack reports that whilst the average house price in England and Wales remained static at £135,200 the number of new buyers entering the market and the number of completed sales increased.

The number of new buyers entering the property market increased by 1.5 per cent in August whilst the number of completed sales increased by 5 per cent. The percentage of the asking price that home owners receive when selling stabilised at 94.5 per cent, adding further weight to the argument that conditions in the housing market remain positive.

The overall stagnation in the market hides the fact that house price falls in the southern counties are beginning to decrease in numbers and in values whilst prices in Wales and the Northwest are "showing clearer signs of house price revival".

Hometrack housing economist John Wrigglesworth commented, "While house prices remain flat this month as a whole, this hides a turning tide within the regions."

Hometrack's survey reflects last week's Royal Institute of Chartered Surveyors (RICS) survey which also found prices had stagnated whilst the number of new buyers entering the market had increased.

RICS reported the largest increase in new buyer enquires since last September.

Mr Wrigglesworth claimed that there was little chance of crash in the housing market as there was 'no intelligent foundation' to fears that a crash would occur.

Recent house price surveys from the Halifax and the Nationwide revealed falling prices due to a shortage of first time buyers entering the market. They also reported that prices in the North and Wales were increasing whilst the prices in London and the Southeast had stagnated.