A fall in supply of new properties in the market has helped prices to move up for the first time in three months, property consultant Rightmove said on Monday.
Property prices declined by 3.2 percent in November and 3 percent in December, 2010 and the current months 0.3 percent growth – may look miniscule but most importantly possibly indicate a trend reversal.
The figures are however, not adjusted for seasonal variations and January traditionally witnesses a price jump – when people typically move house. The January numbers are unlikely to cheer the market much as mortgage sanctions are given only to the safest buyers.
Properties set up for sale is the lowest in two years. Prices are up by 0.4 percent on year-on-year basis and same as December 2010.
Miles Shipside – Director of Rightmove said: “With the number of new sellers at a two-year low, prices are being underpinned by muted new supply just managing to fight off the downsides of lender reticence”.
Commenting on the nature of demand, he said: “However, in less popular locations, the smokescreen of New Year price optimism is temporarily masking the collateral damage that the new era of tighter credit will continue to inflict”.
Rightmove’s analysis was based on data provided by real estate agents on its website, between December 5, 2010 and January 8, 2011.