2007 house prices are expected to go up by 4%, less than certain savings accounts, a new property market survey reveals.
Hometrack has found that property price growth is going down each month with the latest house price index indicating growth of 0.6% in May, down from April's 0.7%.
Moreover, the proportion of postcodes experiencing price increases has dropped significantly in May, from 43.7% in April to 33.9% in May.
The average house price is presently £175,600, 6.7% more than last month last year.
Considering levels of demand, Hometrack reports that there has been no increase in new buyers. This is, the property market analyst states, partly due to "increasing resistance" to relatively high house prices, in combination with the expectation of the interest rate rising this month. Sales levels have also slowed from 9.6% growth in April to 4.3% in May.
This kind of growth is meant to slow down over the rest of the year as affordability pressures place a squeeze on purchase power as well as greater supply coming to the property market .
The anticipated slowdown is likely to be exaggerated by further increases in interest rates higher than the present 5.5%.
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2007 House Prices to Go Up Less Than Savings
Fri, 15 Jun 2007
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