Hometrak: Housing turnover at lowest in 40 years

Graham_Devon

The property forecaster Hometrack has warned that 2011 could have the lowest level of housing turnover in 40 years for England and Wales, as figures showed prices dipped again in November.

Hometrack says 840,000 sales are expected this year – almost 50% lower than the figure for 2007. Its latest housing survey showed prices fell by 0.2% in November from the previous month, following another 0.2% tumble in October.

Prices are down by 2.3% year on year and have fallen every month since July 2010, apart from April this year when the market was flat with no change recorded.

Hometrack said prices were being propped up by people's reluctance to put their homes up for sale, creating a scarcity of supply.

Richard Donnell, the director of research at Hometrack, said: "2011 looks set to register the lowest level of housing turnover for 40 years – a trend which Hometrack expects to continue into 2012.

"An expected 840,000 sales in 2011 is almost 50% lower than in 2007 and equates to the average private sector home changing hands every 26 years.

"This is creating a scarcity of housing and is acting as a support to pricing levels."

Bit in there for both camps.

While sellers are low, they are also having to accept what buyers are prepared to pay.

New instructions down 0.8%, demand down 2.2% in November.

http://www.guardian.co.uk/money/2011/nov/28/hometrack-survey-lowest-40-years

HAMISH_MCTAVISH

Hometrack said prices were being propped up by people's reluctance to put their homes up for sale, creating a scarcity of supply.

Oh right then....

So NOT by endless government interventions to prop up the housing market.

Good to know.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Hometrack said prices were being propped up by people's reluctance to put their homes up for sale, creating a scarcity of supply.

Oh right then....

So NOT by endless government interventions to prop up the housing market.

Good to know.

Yes Hamish. It's the one and ONLY thing keeping house prices up.

Open your mind. i know it's difficult.

Thrugelmir

Richard Donnell, the director of research at Hometrack, said: "2011 looks set to register the lowest level of housing turnover for 40 years – a trend which Hometrack expects to continue into 2012.

Hardly surprising when you consider peoples increased life expectancy.

SecondLegDownIsTheBigOne

HAMISH_MCTAVISH wrote: »

Hometrack said prices were being propped up by people's reluctance to put their homes up for sale, creating a scarcity of supply.

Oh right then....

So NOT by endless government interventions to prop up the housing market.

Good to know.

When even 'endless government interventions' can't stop the falls, it won't be long before those buckling props fail.