Home Asking Price Index, November 2013: prices hit new high as supply drops to new post-crisis low
Asking prices in England and Wales reached a new record high while the total stock of homes for sale fell to its lowest level since 2007.
This is the November 2013 edition of the Home Asking Price Index, released on 13 November 2013, under the headline:
Prices Hit New High as Supply Drops to New Post-Crisis Low
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 total number of properties for sale hits a new post-crisis low: down 55% compared to November 2007
- House prices in England and Wales have risen a further 0.4% since last month, taking the annual rise to 5.7%
- The mix-adjusted average for England and Wales, now £247,137, has moved above the previous all-time high set in August 2007
- Home price inflation is mainly driven by prices in London and surrounding regions. Prices in the capital rose 1.8% last month alone and now stand 13.5% higher than 12 months ago
- Weaker regional housing markets, North East, West Midlands, Yorkshire and Scotland all recorded price deflation since last month at an average rate of -0.4%
- Typical time on market has edged up to 120 days: four days less than in November 2012
Summary
The imbalance of supply and demand continues to worsen as the number of properties for sale falls to a new post-crisis low and buyer demand increases. Surging demand, chiefly in London and its surrounding regions, has pushed the mix-adjusted average price for England and Wales to a new all-time high. This new price high was achieved despite the fact that the weaker housing markets all witnessed a seasonal dip in prices: the North East, West Midlands, Yorkshire and Scotland all recorded monthly price deflation ranging from -0.2% to -0.7%. Other areas of the UK recorded stagnant prices or marginal gains at best. Contrary to seasonal expectations, London experienced yet another price leap of 1.8% in just one month. Price growth in the capital's housing market continues to soar at an alarming rate and this is just one of the hallmarks of an asset price bubble evident today.
As potential buyers pull back in the run-up to the festive season, the typical time on market normally begins to rise at this time of year. The median figure for England and Wales now stands at 120 days (an increase of just seven days since October), four days less than in November 2012. However, the typical time on market for Greater London actually fell one day to 74 days.
Key figures
| Measure | Figure |
|---|---|
| Mix-adjusted average price (England & Wales) | £247,137 |
| Monthly change | 0.4% |
| Annual change | 5.7% |
| Typical time on market (England & Wales) | 120 days |
| Total stock for sale | 518,556 |
| Stock change since last month | -7.9% |
| Stock change vs November 2007 | -55% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk, November 2013
Source: Home.co.uk, November 2013
Sources: Home.co.uk, November 2013
Regional tables
UK Asking Prices, Nov-13
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £159,106 | -0.3% | -1.4% |
| North East | £152,177 | -0.7% | -0.8% |
| Yorks & The Humber | £168,802 | -0.4% | 0.8% |
| England & Wales | £247,137 | 0.4% | 5.7% |
| North West | £173,290 | 0.0% | 0.7% |
| West Midlands | £196,131 | -0.2% | 3.6% |
| East Midlands | £182,505 | 0.1% | 4.2% |
| East | £260,974 | 0.1% | 3.9% |
| Wales | £177,387 | 0.3% | 1.4% |
| Greater London | £407,354 | 1.8% | 13.5% |
| South East | £318,529 | 0.3% | 6.9% |
| South West | £268,335 | 0.0% | 4.3% |
From the director's commentary
"London continues to astound housing analysts, buyers and vendors alike, and it clearly does not require any further stimulation. The fact that the growth is stronger than the boom in 2007 may well be welcomed by vendors but only if they are not also looking to buy new property in the capital, as the competition is vicious."
Doug Shephard, director at Home.co.uk
Read the full November 2013 edition (PDF, 5 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 November 2013 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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