Hometrack’s August housing market survey shows buyer interest in England and Wales falling away for the second consecutive month.
Demand from new buyers declined by 2.2% on July, while the number of properties on the market rose by 2.4%.
The shift cannot be blamed entirely on seasonal factor, with the typical rise in new properties coming onto the market during August standing at only 0.8%.
According to the housing intelligence firm, supply has increased by 14% in the last five months while buyer demand has fallen by 2%.
As a result, average house prices in England and Wales fell by 0.3% in August, compared to a month earlier.
However, Hometrack director Richard Donnell is reasonably optimistic, explaining: “The housing market is in the process of a modest re-pricing that is likely to run for the next six to 12 months.”
He adds: “This follows a period of 18 months over which house prices have firmed rapidly on the back of a potent mix of rising demand and a chronic lack of housing for sale.”
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