–Hometrack: UK July House Asking Prices -0.1% m/m; -3.9 y/y

LONDON (MNI) – House asking prices fell slightly in July and were
3.9% lower than in the same month of 2010, according to housing
intelligence group Hometrack.

This is the latest in a sequence of small declines in house prices
as recorded by this series. In June house prices fell by 0.1% and were
up 3.9% y/y. In May prices also fell by 0.1% on the month and were up
3.7% on the year.

The survey showed a rise in housing market activity with a 9.6%
increase in July in sales agrees, following a 10.7% rise in June. The
average time properties were on the market declined to 9.4 weeks from
June’s 9.7.

Commenting on the latest monthly national housing survey, Richard
Donnell Director of Research at Hometrack said it showed:

“A housing market in broad equilibrium with an increasing number of
sales being agreed between more realistic sellers and a growing pool of
buyers. Almost 4 years into the downturn, the housing market is showing
signs of adapting to a low turnover environment”.

Donnell said that the relatively more buoyant London market
continued to provide a strong support to the national trends with prices
in the capital up by 0.3% over the month.

He continued:

“Despite a general improvement in the balance of supply and demand
over recent months, headline prices remain on a downward trend … and
are likely to fall further over the coming months. Yet with sales
volumes holding up there is no impetus for any material change in

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