House Prices Rising? |
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31st July 2009
House prices in England and Wales have risen month-on-month for the first time since January 2008, according to the Land Registry, with a 2% rise reported in London.
The 0.1% rise in June compared with May brought the value of the average home to £153,046, the survey found. It said that the figures revealed a "flattening" of prices, although the value of the average home was down 14% on the same month a year earlier.
The reality is that it may prove a little premature to celebrate recovery. Nevertheless, I sincerely believe that the market has reached it's nadir and will undoubtedly improve. Price rises are a result of the old driving force of supply and demand. This effect is compounded by a shortage of properties as a result of the stalling of new builds together with the huge volume of unsold properties which have been rented out.
I believe we will see fluctuation with intermittent peaks falling back to levels higher than the previous trough allowing for mean rather than steady growth. Remember, these reported price rises are really not as current as the press would have you believe. These figures report completed transactions, not the point of sale when offers are accepted, often 2 months earlier.
Nevertheless, it is good news and certainly better than we could have hoped for a few months ago. These reports have been reflected in Bushells figures which have increased for the 6th consecutive month.
