HM Land Registry has revealed that home values increased in July in every region of the UK except the North East.
The average home increased by 1.3% between June and July to £163,049, the biggest monthly move since January 2010.
However the annual figure still shows a year on year decline across the country of, typically, 2.1% except in London where values are 1.3% higher.
But let’s not get confused between values and prices. Value is the figure that is definitively achieved by a sale. And ‘price’ is often a figure that is aggregated from data, such as Rightmove, that demonstrates the figure that houses are on the market at regardless of the accuracy involved in that pricing. Asking, and getting are two rather different things.
House values are definitely stabilising. Month on month data from various indicese (and there are now many) that there are fewer reports of falls in sale values of late.
But despite Rightmove and Zoopla, the property websites, stating that asking prices are now falling each month, there is still a ‘reality gap’ between the figure that home sellers want/expect and the figure that buyers are willing to pay. Whilst that void remains, transaction levels will stay at a low.
The gap is narrowing however let’s not get carried away with a glint of positive property market news at last, in thinking that asking prices can now be exaggerated further.
Only last month Rightmove declared that 70% of its advertised properties had not sold this year, a clear indication of a still over expectant approach by vendors.