Musings from Manse and Garret London Property Buyers Agents
Nationwide Building Society have released their latest house price data for July, with news that they have registered the third consecutive rise in house prices and that house prices could end the year higher than where they started. Given the sharp falls in prices last Autumn, year on year, house prices are down only 6%, down from -9% in June.
Rightmove have confirmed what those of us who work in property every day were aware of: there is considerable number of buyers chasing limited stock and the number of buyers hasn’t dropped since beginning of the summer, as it usually does.
Looking at Nationwide’s figures for non-seasonally adjusted house prices, it is certainly true that house prices have risen at a phenomenal rate this year. The ‘average house’ has increased in value by 8% since February of this year, adding just under £10,000 to a house worth £150,000 at the beginning of this year. However no-one expects the Autumn market to be as busy, although I have just done a viewing with an agent who is predicting a boom, but then there are many in our industry who will do so for reasons of self-interest, whether consciously or not.
The interesting thing from the Nationwide research is that as per the graph above, house prices are now on a par with the long term real house price trend, which should give comfort to buyers hoping to stay in their new homes for a number of years.
As for us, in our capacity as London Property Buyers Agents, I think we will see a relatively bumpy property market over the next six months at least. A busy Spring Summer next year perhaps and stable Autunm and then potentially a more difficult 2011, depending on what the Tories do. I do think the worst of the price falls will be over by the end of the year but I also sense a jittery market, so expect minor peaks and troughs. Time will tell.