Smug factor rises for homeowners but is it time to sell?
Published by Brian Church for 24dash.com in Housing and also in Finance
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The latest Halifax House Price Index shows prices for May-July 2014 were 3.6% higher than for February-April 2014. Also, prices in the three months to July were 10.2% higher than in the same three months a year earlier.
After recording a decline in June, monthly house prices grew by 1.4% in July. Halifax cautioned that "monthly movements, however, can be volatile and the quarter on quarter change is a more reliable indicator of the underlying trend. Since last December there have been four monthly price increases and four price falls".
New buyer enquiries continue to ease, a trend that started in November last year. On the other hand, the latest Halifax Housing Market Confidence Tracker indicates that sentiment towards selling is growing. Over half (57%) of those surveyed believe the next 12 months will be a good time to sell, compared to only 32% who feel it will be a bad time. This is the highest score of this measure since the survey’s inception in April 2011.
Stephen Noakes, Halifax mortgages director, said: "While supply remains low, housing demand continues to be supported by a continuing economic recovery, growth in employment, improving consumer confidence and low mortgage rates. However, earnings growth is still lagging behind consumer price inflation."