The news from Rightmove confirmed the strange market phenomenon of rising prices in an economy still in recovery with the estate agents website figures indicating the largest October house price rise in 6 years!
The average asking price rose to 230,184 pounds ($374,417) from 223,996 pounds in September, marking the largest October rise in six years and leaving the average price up 0.2% compared to October 2008. That’s the first time the average price has been up on a year-on-year basis since June 2008, when it rose 0.1%.
The UK’s leading private sales The House Shop director Jane Marr “It’s clear that this is all about lack of supply and once home sellers have the confidence to get back on the housing market we can see prices stabalising”
The Rightmove House Price data found the recovery comes amid a thin market. Transactions remain 54% below 2007 levels, with the lack of supply driven by homeowners unwilling to move due to the economic backdrop.
According to new data from the Council of Mortgage Lenders gross mortgage lending totalled an estimated £12.5 billion in September, a 2% rise from the £12.3 billion in August but down 27% from September 2008. Gross lending in the third quarter of 2009 was an estimated £38.9 billion, an 18% increase from the second quarter and down 36% from the third quarter of last year.
In today’s CML market commentary, CML economist Paul Samter observes:
“House buying activity is running at considerably higher levels than around the turn of the year. However, it remains weak on any historic comparison and is unlikely to rise much further given the constraints the lending community faces and a still difficult economic backdrop.
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© Housing Market News by The House Shop
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