Forecast 5-8% house price rises for 2007
- 1st February 2007
- Selling Property News
The price of a typical house increased by the equivalent of £45 per day in 2006, says the Nationwide.
In 2006: “House prices increased three and a half times faster than last year and returned to double digits for the first time since February 2005,” says Ms Earley of the Nationwide.
The annual growth figure rose to 10.5% in December and this was “way above the widespread expectation this time last year that annual house price growth would be in low single digits,” Ms Earley said.
The price of a typical house increased by the equivalent of £45 per day in 2006 - three and a half times faster than the £12.50 per day in 2005 - bringing the price of a typical house up to £173,746.
“Evidence from estate agents continues to show that supply conditions are tight with fewer sellers coming to market. The stock to sales ratio – a good leading indicator of house prices – has continued to increase suggesting a few more months of firm price growth,” Ms Earley said.
The Nationwide expect reduced affordability and recent interest rate hikes to affect activity levels and lead to slower house price growth in the second half of 2007.
The stock to sales ratio – a good leading indicator of house prices – has continued to increase...
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