House prices fall 0.3% in June : Acadametrics

The average price of all property transactions completed in England & Wales in June 2009 was 0.3% lower than in May, the lowest monthly fall since April 2008, according to Academetrics.

On an annual basis, the average price of all completed transactions in England and Wales in June is 13.1% lower than a year ago – and together with the revised figure for May now show that on an annual basis, the fall in house prices was at its highest in April 2009 at minus 13.7%.

Although starting from a very low base, the traditional increase in housing transactions during the spring did take place in 2009, despite the reported difficulties in obtaining mortgage finance. May housing transactions were up 43% over February 2009, against an average increase of 36% for the equivalent period over the last nine years.

However the overall level of housing transactions in May 2009, at approximately 40,000, is down 62% from the average 103,937 homes sold in May, for the years 2000–2008.

Peter Williams, chairman of Acadametrics, said: “The average house price has fallen well below the £200,000 mark and at £197,802 is now back to where it was in January 2006.

“The monthly percentage change at -0.3% is one seventh of the peak monthly fall recorded some six months ago, at -2.2% in November 2008, and the data do suggest that the sharpest falls are behind us and that the rate of decline has now slowed significantly.

“The average price of a home in England & Wales is now £197,802, down £34,020 since its peak in February 2008 at £231,822. In percentage terms, from the peak to the current trough this is a fall of -14.7%, and compares to the -16.4% peak to trough fall in the previous housing downturn between 1989 and 1992.

“This might suggest we are nearing the bottom of the trough though there are some commentators who would suggest otherwise. On the basis of the evidence, however, we can note that monthly falls over the last two months are only half that of the previous four months, and that the rate of decline in the prices achieved in completed transactions has been slowing.”