The November data show that average property prices have fallen by 8.1% over the last year sending values back to levels last seen in January 2006.
Richard Donnell, director of research at Hometrack, says “All the indicators from the latest survey point to a continued fall in property prices in the short-term. A weak economic outlook and limited availability of mortgages are set to keep prices under downward pressure in 2009.”
But he adds: “Despite this, transaction volumes may be close to bottoming out. The market has been stripped back to the bare bones. It now comprises just a relatively small number of committed buyers able to access finance and needs based sellers who are having to become more realistic on pricing.”
The survey also found that the average time taken to sell a property now stands at 11.8 weeks, down from 11.9 weeks in October.
This is the first time the average number of weeks taken to sell has dropped for a year and a half.