Halifax have reported a third consecutive monthly increase in house prices, but agents warned that their pipelines are looking awful.
Despite yesterday’s apparently positive Halifax report, the number of For Sale boards has dipped. The latest findings from Agency Property show the lowest level of monthly sales in September since February this year – a huge monthly fall of 8.7% from August. This was also a drop of 1.5% in three months.
The firm, which measures new For Sale boards, yesterday warned that the trend is extremely worrying. One agent, James Siebrits of CB Richard Ellis, responded to the Halifax figures by saying both sellers and buyers are currently wary, with fewer repossessions on the market to grab the attention of property investors.
Siebrits said: “House prices are likely to end the year higher than at the start of 2009, but only slightly. A sustained recovery is some way off.” He added: “Recent increases in the number of house-hunters have not fully translated into transactions.”
If the agents are right, then the housing market looks seriously depressed for the rest of this year, with low stock, rather than price rises or increased buyer demand, the major issue.
Yesterday, Halifax insisted the recovery in prices was encouraging people to put their homes up for sale, adding that this could curb any further growth in values. However, on the ground, agents are in reality reporting few signs of emerging sellers.
Agents contacted by Estate Agent Today in the last few days have all said that while new instructions have been so low that further prices rises could be stoked, actual supply remains worryingly negative.
Halifax said the 1.6% September increase could be partly attributed to the low level of houses for sale. Its housing economist, Martin Ellis, said: “There are also some signs that the improvement in market conditions is encouraging more people to put their properties up for sale. This development could loosen market conditions by alleviating the current shortage of supply and curb the pace of house price growth evident in recent months.”
According to the Halifax, the annual change in house prices now stands at -7.4% from this time a year ago, although there has been a 1.7% rise since the end of 2008. Prices, however, do not seem to be the issue: pipeline business is.
