June house prices 'more realistic'

29/06/11

By Charlotte Birch

Home sellers appear to have succumbed to the current conditions of the housing market, with monthly figures showing prices falling for the eleventh time over the past year.

According to property research company Hometrack, house prices have fallen 3.9 per cent in the past 12 months, with June seeing a drop of 0.1 per cent.

With sellers agreeing on lower - and more realistic - prices, estate agents saw a turnaround in business, with the number of agreed sales reaching its highest level since March - rising 10.6 per cent in June.

Hometrack believe prices will fall around 1 per cent in the next six months of the year, and predict demand will not outstrip the number of homes coming up for sale, meaning agents' books look set to grow.

Hometrack research director Richard Donnell said: "The second half of the year is set to see subdued demand keeping a further downward pressure on prices.

"While the balance between supply and demand is not significantly out of kilter, subdued demand and weak consumer confidence are set to keep headline prices under modest downward pressure over the months ahead."