Graph Of The Week

Here’s an interesting graph from the latest Hometrack survey. What it shows is the recovery in house prices over recent months.

The proportion of the asking price achieved rose to 92.4 per cent in September from a recent low of 88.3 per cent.

This is confirmed by our own research – our recently launched House Prices & Affordability Index reveals six consecutive months of stable or positive monthly price growth.

However, our research also shows that it’s the higher end of the market, populated by equity rich homeowners chasing a limited supply of property, that’s been driving the recent price rises. It is, moreover, London and the South that’s been most bouyant.

With this in mind, it’s hard to argue with the conclusion reached by Hometrack’s Richard Donnell: “Much of the increased activity in recent months has been driven by bargain hunters and those who are less affordability constrained.

“Looking ahead, it seems likely that low sales volumes and a general scarcity of housing for sale is a trend set to support prices in London and the South East for the remainder of the year and further price rises are
likely in the very short term.

“Across the rest of the country where the housing demand/supply imbalance is less pronounced overall prices are set to track sideways.”

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