House prices in England and Wales have fallen for the 12th consecutive month during June according to property research by Hometrack.

Hometrack said that asking prices have fallen by 3% since June 2004. However, the number of agreed sales continued to rise in June by 3.5 percent, albeit at a slower pace then May’s 7.6 percent. The slow pace is down to a fall in the number of buyers entering the market.

Properties are staying twice as long on estate agents books, with homes now taking 7.6 weeks to sell. In June 2004 the average home took just 4.2 weeks to sell.

With an oversupply of homes and a lack of buyers, Hometrack believe that prices could fall further. During June, properties on average sold at 93.5% of their asking price, compared with 93.6% the previous month. However sellers continue to ask for unrealistic prices.

The national average price for a British home now stands at £161,600, £300 less than in May and down from a peak of £167,700 in June 2004.

Hometrack has changed it’s 2005 house price inflation prediction to 0% - down from a predicted 3% in May.

Hometrack Housing Economist John Wriglesworth said: “The only good news is an upwards trend in sales agreed, and a general expectation of lower interest rates before the end of the year.

We expect house prices to continue to bump along the higher plateau after the coming months. While the market is stagnating it is showing absolutely no evidence of crashing.

Longer times to sell and higher discounts achieved from the asking price all point towards a weakening market.

The only good news is an upward trend in sales agreed, and a general expectation of lower interest rates before the end of the year. These should help boost confidence, and ensure price stability.”
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