A greater number of properties are coming on to the market for sale, while demand is falling, the latest Hometrack National Housing Survey has revealed. According to the organisation, weakening consumer confidence is likely to further hit demand for real estate over the coming months, exerting downward pressure on the value of homes by the end of the year.
Richard Donnell, director of research at Hometrack, stated that there had been a "clear shift in the balance between supply and demand" during September, with fewer buyers yet more properties being put up for sale. He cited problems in the eurozone, domestic economic worries and stretched household budgets as factors that are preventing consumers from searching for a new home. "This will compound the gap between supply and demand and suggests a likely acceleration in the level of monthly price falls over the final quarter of the year," Mr Donnell commented.
The most recent Nationwide House Price Index found that there had been little fluctuation in the value of residential real estate during September, with a 0.1 per cent rise in prices recorded compared to August. However, the research noted that on an annual basis, home values had fallen by 0.3 per cent.