January sees house price falls already

Posted: 27 Jan 2009 08:42:37 GMT

Housing market analyst Hometrack has published research showing a fall in house prices of one per cent since the start of the new year.

Bringing the year-on-year drop in house prices to 9.4 per cent, the falls in property values highlight the number of factors at work forcing the property market down.

Richard Donnell, director of research at Hometrack, said: "Purchasers remain few in number and cautious. Some agents have reported potential buyers extending rental contracts for another six months to sit out the current uncertainty."

Homeowners are already facing significant waiting times of 12 weeks to sell properties, but with negative equity continuing to be a threat to buyers, the demand for homes is likely to remain low throughout the year.

"The short-term prospects for the economy and levels of unemployment are at the forefront of most consumers' minds and these will be key to the performance of the housing market over 2009," Mr Donnell added, suggesting selling a home is likely to remain an arduous process.

Selling a home online could offer some benefits, however, as doing so could attract a greater number of buyers than selling a property through a traditional estate agent.



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