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29th Jun 2009
Rising sales and falling supply lead to house prices levelling out in June
House prices ground to a standstill in June as the number of new buyers increased, the latest housing market survey from Hometrack reveals.
Rising sales volumes, a dwindling supply of housing for sale and a continuing increase in demand have all contributed to the standstill.
The survey shows the number of new buyers registering with estate agents rose by 4.6% in June, the fifth monthly increase in a row.
New buyer registrations have grown by 36% since the start of the year in stark contrast to the same period last year when agents registered an 18% drop in the number of buyers on their books.
Sales have also risen by more than 80% since the start of the year, albeit from a low base.
One key indicator of market improvement is the average time homes are on the market. This fell to 9.4 weeks in June compared with 10.4 weeks in April.
Richard Donnell, director of research at Hometrack, says: "Lack of supply and rising demand have combined to prop up house prices in the past couple of months. In six months the volume of buyers has grown by 36% and there has been a 6.4% rise in the number of homes for sale."
Meanwhile, figures from the Land Registry reveal that house prices in England and Wales fell 0.2% in May. The average house price now stands at £152,497, while the annual rate of decline is 15.9%.
All regions of England were hit with price falls in May, with the North-East posting the steepest decline at 17.2% |
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