House prices hold steady

03.07.09

Hometrack’s latest research showed that prices were steady in June, while volumes were up 4.6%. Since the start of the year sales have risen by more than 80%, albeit off a low base.

Richard Donnell, Hometrack’s research director, said: ‘The jury is still out as to whether the momentum gained over the spring and early summer can be maintained for the rest of the year. The two key risks for the market are either a renewed weakening in demand or a surge in the volume of housing for sale.’

Donnell added: ‘Given the uncertain outlook for the economy it is the demand side where the greatest risk lies, as many would-be buyers remain cautious or are unable to obtain sufficient equity or finance to access the market.’

Hometrack’s research follows the latest Revenue and Customs figures, which show a 7% rise in property transactions in May.

Cluttons residential sales partner, James Hyman, said this showed that buyers have been ‘snapping up’ competitive mortgage deals.

‘Now sellers have the confirmation they need to go the market to take advantage of the current shortage of stock and pent-up demand that’s causing keen competition for quality properties,’ he said.

Hyman added: ‘The market is set to slow again later in the year when the base rate is expected to edge upwards for the first time, so potential sellers should start the selling process now, in advance of sluggish times ahead.’

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