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Property Price Market Update August 2010

Quick snap shot:

August and July property market figures continue to report a rise in the number of properties for sale. Rightmove claim that they received 117,000 new properties for sale in August, this is versus an average number of properties actually being sold this year around 50,000. With no changes in the shortage of lending, it's likely that if this trend continues prices MAY fall in areas struggling to recover from the recession economically.

A North South divide in property prices is definitely happening. Most of the current rises reported in the market are from areas such as London (up by 12% year on year), closely followed by the South East (+9.4%) and the South West (+8.7%).

Property prices 'up north' such as the North East (-1.4% YOY) are still down year on year, despite it being a rough year for property prices and volume in 2009 and the North West isn't really registering any changes.

From a volume perspective, things are much more helpful in working out what's happening and where we are going.

Sales Volumes have fallen dramatically over the last few years:-

2006 = 1,300,000
2007 = 1,222,000
2008 =    619,000
2009 =    613,000

To date in 2010 we've sold 230,000 properties by the end of May. Forecasting ahead, this suggests sales of only 550,000 - and that's mostly due to a lack of pick up in May which is usually a very good sales month.

Of course we know that people held back selling their property due to the election and the hope they wouldn't have to pay for a HIP, and sales are reported by agents to have bounced back, but we know from Hometrack's data that there aren't any more buyers being able to purchase, partly due to the lack of funds and partly due to the fact they are now likely to hold off buying while the media incorrectly reports on prices falling.

Any reports on 'house prices falling' should be taken with a pinch of salt. The fact is that in the majority of areas, property prices haven't changed much this year at all. It's just that for the first half of this year prices were higher than 2009 and for the second half of this year they will be about the same. As most of the media report year on year stats because they don't understand how property markets work, sadly their interpretation of the property surveys is incorrect.

If you require detailed market commentary or have a question about what's happening in your area, then contact us on 0845 838 1763 or email enquiries@designsonproperty.co.uk. We can also help you value your own home if you need an independent view of how to value the property.

READ MORE to find out What's happening in YOUR local AREA!

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