New home prices down 1.6%

New home prices were down last month by 1.6% , from 258,581 to 254,374 says SmartNewHomes.

David Bexon, managing director of SmartNewHomes.com, says: The recent fall in price of a new home was inevitable with the summer months always proving quieter for the industry. The unusually hot weather experienced this July only intensified the situation with even more buyers putting off viewing properties in favour of enjoying the sunshine.

However, the fall in buying activity offers no call for concern and I am confident that we will see a return of the buoyant market before the autumn.

Yorkshire and Humberside remains in the top three most popular places for new home buyers with inward migration of 3% in July. The increased demand for new homes within the region has led to an increase in prices, with new homes in the area up 2.7% on the previous month, reflecting continued demand.

Apartment prices have continued to fall this month, representing the biggest fall in price across the mix, down 2.9% since June. As a result, areas such as the North West which is currently experiencing high levels of apartment development has suffered more significant falls in new house prices, with the average price of a new home down 2.2% over the last month.

In contrast, the price of a new semi detached property is up 12.2% since the same time last year indicating a continued demand for this property type. While the number of semi detached properties in the mix is also up, 2% since July last year, this is clearly not enough to sustain demand.

Bexon adds: The price of a new apartment has fallen again over the last month reinforcing our campaign for the young family which highlights an oversupply of apartments and a lack of suitable family homes. However, we are pleased to see a slight fall in the number of apartments making up the new housing mix in July, down 2% over the last month an indication that government may finally be allowing house builders to respond to consumer demand.”