House prices 'on rebound'

10:41am Thursday 16th August 2007

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HOUSE prices in York are have "rebounded slightly", according to the latest housing market survey.

A survey by RICS, the Royal Institution of Chartered Surveyors, shows that in York, as elsewhere in the Yorkshire and Humber region, prices had fallen in June, but July's growth is still below the long-term average.

Edward Waterson, of York estate agents Carter Jonas, said: "Despite a drop in the number of general inquiries, there are still a number of serious and well-funded purchasers.

"As a result, July will go down as our most successful month ever in terms of sales agreed. The very best properties are still fetching record prices."

But Kevin Hollinrake, of Hunters, York, said the market had been pretty static as a result of five interest rate rises in the past year.

He said: "Although there's a reasonable level of activity the five interest rises in the last 12 months have had a pretty profound effect on the market. It's much, much slower than it was this time last year.

"The market lives on confidence and people are not confident while they see interest rate rises occurring."

Nationally, new buyer inquires declined at their fastest pace since August 2004, with stock of unsold property on surveyors' books increasing to the highest level since January 2007. New buyer inquiries fell in the Yorkshire and Humber region, although at a slower pace than previously.

The ratio of completed sales to the stock of available property on the market fell for the fourth consecutive month but remained inline with the survey's long run average of 37 per cent. Completed property sales for the quarter to July fell to 23.5 per surveyor, down from 24.4 in June.

Jennifer Welch, RICS North operations director, said: "The combination of softening demand and supply is causing market conditions to weaken further.

"Buyer activity has pulled back a little over fears that we may have seen the top of the market. With interest rates perched at 5.75 per cent and a jump to six per cent a strong possibility, aspiring first-time-buyers are continuing to rent until the market trend becomes clearer."