Study warns of house price falls
Jul 03 2012
House prices have "stalled" and they could fall by up to 2% in the next six months amid the weak economy and the ongoing eurozone crisis, a study has warned.
The increase in new homes coming on the market has outstripped the numbers of potential buyers registering with estate agents for the last three months, and the gap is set to widen as the seasonal summer slowdown kicks in, property analysts Hometrack said.
Prices remained flat across England and Wales in June month-on-month, following three consecutive months of rises, and London was the only region to see an increase, with a 0.3% rise.
Prices were unchanged month-on-month in the South East and Wales, dropped by 0.1% in the East Midlands and the South West, and fell by 0.2% in East Anglia, the North East, the North West, the West Midlands and Yorkshire and Humberside.
The weakening demand from buyers was reflected in new buyer registrations with estate agents declining for the first time in five months, with a 0.5% month-on-month fall in June.
The study said the Olympics is likely to contribute further to the subdued housing market, which is showing signs of weakening in southern regions outside London, areas which have often performed relatively strongly.
The time a property takes to sell in these southern regions has risen to 8.4 weeks, from eight weeks in April, and sellers there are also showing they are increasingly prepared to "take a larger hit" on asking prices to push a sale through, Hometrack said.
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