Despite current market turbulence, the new homes market is finishing 2007 on a positive note, with monthly price increases returning to those previously experienced in the spring.
The final quarter of 2007 has seen positive price growth (up 0.6%) across the new homes market, while the monthly price increase in November was recorded at 0.8%. This, combined with December’s interest rate cut and the promise of more to come in early 2008, indicates a steady start for new homes in 2008.
Popular destinations
Popular destinations in 2007 have been the south east and south west, where prices have remained high, with average prices up 6.8% and 11.2% respectively on the previous year. At the opposite end of the country, inward migration has been strong in the north and in Scotland, as more new home buyers look to buy their next home here. With the recent announcement that the 2014 Commonwealth Games will be held in Glasgow, Scotland’s popularity looks set to continue over the next few years.
David Bexon, Managing Director of SmartNewHomes.com said: “The recent cut in interest rates and the steady growth in new home prices recorded this month is good news for homeowners across the country.
“While city bonuses may take a knock this year, something which is likely to be reflected in a reduced demand for top end properties including new, luxury penthouse apartments, I am confident that the market will recover from this and any current turbulence. I would expect to see new home prices rise steadily throughout 2008, finishing with annual price growth in the region of 2 - 3%.”
See Also: Press Releases (413)
Date Published: 14 December 2007
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