Hometrack says house prices still falling

House prices have dropped again for the third month according to a new analysis performed by Hometrack the property analysts. A September report published by Hometrack reveals that the price of homes dropped noticeably in Wales and England without either region showing any rise in the monthly prices. The new figures come at the same time that the government has started to look at increasing the amount of mortgage lending they make available via the Funding for Lending initiative.

In September houses prices dropped by about .1% which is the same drop that was seen in July and August. The northeast region of England saw the largest change with houses prices dropping by about .3% overall.

Richard Donnell, the director of research for Hometrack, stated that the legacy of summer which saw some seasonal factors that were made worse by the Olympics continued to trickle into September. The lower house prices have also reduce customer confidence in the market overall, which has been a problem the housing market has been suffering against for quite some time.

London was the strongest market in the survey with most properties selling in about 5.8 weeks after they have been placed on the market compared to the national average of about 9.9 weeks. House prices in the London area also were mostly able to get as high as 94% of the asking price which is higher than the average nationally. Many people often end up coming down on their asking price in an effort to simply sell their profit or because they cannot afford to wait any longer without making a final sale.