Home Asking Price Index, December 2009: market price erosion erases recovery
Asking prices in England and Wales fell 0.4% this month and are 2.0% lower than a year earlier, with marketing times lengthening.
This is the December 2009 edition of the Home Asking Price Index, released on 14 December 2009, under the headline:
Market Price Erosion Erases Recovery
The headlines and summary below are the report's own words, with the key figures as it published them, followed by the report's charts and regional tables as printed.
Headlines
- The mix-adjusted average Asking Price for homes on the market in England and Wales fell back by a further 0.4% this month.
- Market house prices fell this month in 6 of the 9 English regions. Welsh prices held firm whilst Scottish market house prices fell further (-1.4%).
- Asking Prices in England and Wales are 2.0% lower than in Dec 2008.
- Typical (median) and Average (mean) marketing times have risen by 5 and 6 days respectively since November further indicating a loss of market momentum.
Summary
Following a brief spell of optimism over the summer months the dire state of the UK economy at large and a dearth of mortgages for the first time buyer is weighing heavily on the UK housing market. Price erosion continues in semi-detached and terraced housing and flats, whilst prime detached housing remains price stable. A slowdown in the tide of new unemployed will raise some seasonal cheer but more job cuts are likely in the 2010 together with unwillingness, by prospective homebuyers, to take on large financial commitments.
Market weakness remains evident in more conservative initial pricing of properties for sale, rather than 'optimistic' initial pricing followed by heavy discounting adjustment as seen last year. November saw 39,868 properties reduced in price by an average of £14,628. Both these figures are the lowest recorded over the last year.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average asking price | £227,607 |
| Monthly change in asking prices | -0.4% |
| Annual change in asking prices | -2.0% |
| Typical Time on Market | 120 days |
| Average Time on Market | 215 days |
| Properties reduced in price | 39,868 |
| Q4 change in average price (England & Wales) | -0.3% |
| HAPI index value | 97.21 |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Laspeyres Index based on Weighted Arithmetic Mean of Weighted Arithmetic Mean of Regional House Prices. [May04 = 100]
Laspeyres Indices based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Laspeyres Index based on Weighted Arithmetic Mean of Regional House Prices [May04 = 100]
Source: HM Land Registry
Regional tables
Regional Housing Markets
| Current average price | Q4 change | |
|---|---|---|
| Greater London | £339,415 | +0.2% |
| South East | £283,399 | +0.2% |
| East Anglia | £237,749 | -0.2% |
| Wales | £179,450 | -0.2% |
| East Midlands | £170,264 | -0.5% |
| South West | £250,875 | -0.7% |
| West Midlands | £189,920 | -0.7% |
| North West | £176,184 | -0.8% |
| Yorkshire and Humber | £170,397 | -0.9% |
| North East | £154,274 | -0.9% |
| Scotland | £157,142 | -3.2% |
| England & Wales | £227,607 | -0.3% |
Regional Asking Prices for December 2009, showing gains and losses in Q4.
Read the full December 2009 edition (PDF, 10 pages)
About the Home Asking Price Index
The Home Asking Price Index measures the change in the prices sellers ask for residential property across England, Wales and Scotland. Today it is computed every month from around half a million advertised homes and is mix-adjusted, so a change in what happens to be on the market does not move the figure; earlier editions state the sample they were built from. Because an asking price is set months before a sale completes, the index runs around five months ahead of completed-sale measures such as the UK House Price Index.
Every edition in the archive, back to October 2006, is listed on the index page. How we measure the UK property market explains the listing data behind it, and today's figures by area are on house prices and rental prices.
Text and figures above are quoted from the December 2009 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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