New home prices fall
The average price of a new home has taken a fall over the last year, down 1.3%, reflecting the increasing volume of more affordable new homes in the north of the UK, according to smartnewhomes.com.Semi comes out on top
The semi detached property is one of only two property types to experience an increase in price over the last month, while apartments have experienced the biggest fall – further evidence that traditional family homes are in more in demand.
While the average price of a new home (stock) has continued to fall, the price buyers are willing to pay for a home (demand) rose in February, recovering from a sharp fall experienced at the start of the year – an indictaion that prices may be about to begin rising again.
The new homes market has started slowly for 2007, with prices down month on month since the start of the year as buyers remain cautious, in the face of rising costs. However, this negative trend looks set to change with the price buyers are wiling to pay for a new home taking an upturn in February, indicating positive price growth across the market may be to follow.
The average price of a new home fell by 1.4% over the last month
The average price of a new home fell for the second month in a row, highlighting a slow start for 2007
For the first time in five months, the average price of a new home fell below that recorded at the same time the previous year
The average price of a new home is down 1.3% over the last year
After a series of price falls during mid 2006, new home prices had taken a positive turn in the latter half of the year, a trend which had continued until last month, when the average price of a new home fell below that recorded at the same time the previous year. However, this fall can in part be explained by an increasing quota of homes being built in the north, where prices are lower.
New homes market in Wales is thriving
Despite the average price of a new home falling in February, a small number of regions across the UK, including Wales, London and the West Midlands are bucking the trend and have reported strong price growth over the last month. Wales is currently leading this positive growth, with the average price of a new home up 2.7% over the last month - helped in part by the increasing number of new detached homes currently being built here.
Migration
Scotland has yet again proved the most popular destination for new home buyers, with inward migration of 6% over the last month, closely followed by the south and the north west, as many new home buyers look to move away from the more expensive south east and London and into more affordable areas where they are able to get more for their money.
In contrast, the West Midlands is still proving the least popular destination for new home buyers as migration away from the area continues. However, despite this continued outward migration, prices here remain high compared with surrounding areas.
Property types
While the number of new detached and semi detached homes have fallen over the last year, apartments and townhouses have increased their presence in the mix, up 1% and 3% respectively.
As a result of their presence in the new homes mix diminishing, the average price for both a new detached and semi detached homes have increased over the last year, up 1.4% and 7.4% as high demand for these property types continues.
While townhouses have experienced a fall in price over the last year, this is not a poor reflection of their popularity but instead, can in part be explained by the increasing numbers now being built outside of London and the south east, predominately in the north and the north west of the UK, where prices tend to be more affordable.