A new survey by Hometrack indicates that the low house price trend of the last 15 months is set to continue.
This is reassuring news for home buyers but also for property agents as house sales are picking up.
Although house prices fell by a further 0.1 per cent for the month of September, transactions are on the increase, up 5.5 per cent on August.
The average national house price is now £160,900, a reduction of 3.7 per cent in the last year, and down from a peak price of £167,700 in June 2004.
The house price slump is caused by an over supply of properties on the market. Although sales are picking up, the number of properties on the market continues to grow steadily.
The survey recorded a 1.9 per cent increase in properties coming onto the market which has prompted Hometrack to predict that house prices will continue to fall in the coming months.
John Wriglesworth, Hometrack’s housing economist said: “House prices are continuing their bumpy path towards more affordable levels and this has helped buyers come back into the market over the summer.”
However, Hometrack does not foresee a price crash, and expects further house price recovery in 2006.
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