Squeeze on stock threatens future new home affordability
The average price of a new home fell by just 0.5% in June 2009, following a sharp drop of 2.5% in May. The monthly drop reduced the decline in annual growth in the new homes market to -13.7%. The rising price of larger property types continues to indicate the re-emergence of a supply/demand imbalance in the family homes market, with the price of detached homes increasing for the fourth month running.
Commenting on the data, David Bexon, Managing Director of SmartNewHomes.com said:
“Little can be read into individual monthly house price data, but collectively the signs remain positive that the overall house price decline is continuing to slow. Attempts from developers to support buyers in the new homes market have kept prices conservative, but decreasing stock levels are posing a threat to long-term affordability.
View the latest New Homes Index.
Date Published: 01 July 2009
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