1.2% slump in U.K. house prices in July

For the tenth consecutive month British house prices have fallen, in July, housing data firm Hometrack reported 1.2% decrease as demand continues to fade.

Home prices are the same now as they were back in October 2006, which is an average price drop of 4.4% in the last 12 months.

The director of research at Hometrack Richard Donnell, says it’s simply because homeowners do not need to move, and that the purchasing volume has been the biggest decline in demand over the last 12 months.

Most homeowners who can stay put in their property have, so there hasn’t been any increase in supply of homes for sale in the last four months, although there has been a 20% drop in demand for purchasing property over the last 3 months.

Homeowners are not getting their full asking price for the properties they are selling, infact according to the hometrack survey, the proportion of the asking price has gone slipped from 91.6% to 90.9% over the last month, this against what homeowners got a year ago, 95.1% is making us all worry, it’s actually the lowest level drop since the survey began in 2001.

The report also showed that the average house price for July was £168,500.

Source: marketwatch

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