New Homes Commentary for October 2009
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The new homes market shows a small drop this month, which is no big suprise as it will reflect people being away on holiday in the summer. Houses for larger families continue to do well, while apartments show a quite a big drop, mainly due to more stock coming onto the market. This shows how 'fragile' the supply and demand see saw affects prices while we rumble along at the bottom of the market. A lack of finance in particular holds this sector back especially versus second hand homes as deposits are normally higher.
Regionally, London and the South East continue to show price growth while the West Midlands, perhaps due to higher stock levels, is still showing prices to be down by 27% year on year.
The new build market is currently a great barometer to what will happen in the overall market, often reacting first (just after the auction market) and then the overall market follows. So we are likely to see some increases over the coming months in new build, then probably dropping off over Xmas and picking up towards the end of January 2010....unless there is a sudden desire by our lovely lenders to start lending fairly to new build and first time buyers!
David comments “In the short term, the outlook is positive for a steady increase in supply over the coming months. However, it is hard to see how such a slow rise in supply will not soon be overtaken by surging demand".
So, as we have been saying since October 2008, if you are thinking of buying a new build home and can secure the finance to do so, now is definitely a good time to be looking (as long as you are planning to stay in the home for five or more years).
Want to know more? Need help? Then call us on 0845 838 1763 or email email@example.com
New Homes Data from Smartnewhomes
|Statistic Measure||Feb 09||Mar 09||Apr 09||May 09||Jun 09||Jul 09|
|Average new home price||£227,893||£220,128||£220,955||£215,857||£214,846||£212,440|
|Monthly % change||+2.8%||-3.4%||+0.4%||-2.3%||-0.5%||-1.1%|
|Three monthly change||+0.6%||-2.8%||-0.3%||-5.3%||-2.4%||-3.9%|
|Annual % change||-9.6%||-13.2%||-13.0%||-15.3%||-13.7%||-13.6%|
For more market commentary on a national or local level:-
|Statistic Measure||Aug 09||Sep 09||Oct 09|
|Average new home price||£217,058||£212,124||£214,909|
|Monthly % change||+2.2%||-2.3%||+1.3%|
|Three monthly change||+0.6%||-1.3%||+1.2%|
|Annual % change||-10.4%||-10.2%||-7.5%|
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit ABOUT US
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Sylvia Tidy-HarrisSTH Management
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