Following price falls over the second half of 2012, house prices were unchanged in January, according to Hometrack.
New buyer registrations and property listings were down over the month, but the majority of respondents
to the survey (79%) are optimistic about the prospects for the spring market – primarily in relation to sales
volumes rather than price growth.
Fewer postcodes (16.2%) registered price falls in January compared to December 2012 (27.4%) and
supply has contracted to its lowest level for three years on a rolling six month change basis.
A lack of supply is acting as a support to pricing levels and is a key theme as we start 2013, Hometrack said. The beginning of the year follows an above average contraction in supply over 2012 H2.
Richard Donnell, director of research at Hometrack, said: “House prices started the year unchanged in January following monthly price falls over the second half of 2012. London posted a 0.3% increase which supported the improvement in the headline price change.
“Although new buyer registrations and property listings were down over the month, we expect these to post a
rebound in the February survey. The majority of respondents to the survey (79%) are optimistic about the
prospects for the spring market – primarily in relation to sales volumes rather than price growth.
“Fewer postcodes (16.2%) registered price falls in January compared to December 2012 (27.4%) and supply,
has contracted to its lowest level for three years on a rolling six month change basis. A lack of supply is acting as a support to pricing levels and is a key theme as we start 2013. The change in the supply of housing for sale has followed a very similar pattern over the last three years with strong growth in the first half of the year offset by a decline in the second half. The start of 2013 follows an above average contraction in supply over 2012 H2.”
