The housing market as a whole looks to be going nowhere, according to this morning’s Hometrack report.
Prices tiptoed down by just 0.1% over the last month. New applicant numbers rose by 1.1% and property listings increased by 1.9% compared with the month before.
Patchy regional differences mean that in 8% of postcodes – primarily London ones – there have been price increases, but in 27% there have been price falls.
Hometrack director of research Richard Donnell said: “Almost four years into the downturn, the housing market is showing signs of adapting to a low turnover environment.
“Despite a general improvement in the balance of supply and demand over recent months, headline prices remain on an a downward trend and are likely to fall further over the coming months. With sales volumes holding up, there is no impetus for any material change in prices.”
He added: “Both sellers and buyers have become more accepting of realistic pricing.”
For June, Hometrack had reported a 10.7% increase in sales agreed, but after a particularly slow period in April and May, and wondered whether this would be sustained.
It has not really had an answer, as while sales agreed did improve in July, the rate slowed to 9.4%.
Nor has time on market really changed, now standing at 9.4 weeks, while the percentage of asking price achieved has been unchanged for three months, at around 92.7%.
The Hometrack index is a sentiment report, rather than one that delves into facts and statistics. It asks just 11 questions of its participants, but does not supply information as to the proportion of unsold properties versus those that do sell. Nor does it give information as to fall-throughs on sales agreed.