Prices in London fell by 0.1 per cent in September, according to the
latest report from Hometrack...

London The average house price in London now stands at £261,000, down
from £274,200 in July 2004, an annual decline of -4.6 per cent.

Out of all 33 London boroughs, only six saw house price rises, 18
remained static and nine recorded falls. The best results were seen in
Hounslow (0.5 per cent), Tower Hamlets (0.5 per cent) and City of
London (0.3 per cent).

The worst performers in September were Enfield (-1.4 per cent),
Southwark (-0.6 per cent), Redbridge (-0.5 per cent) and harrow (-0.5
per cent).

Sales, Supply and Demand
Activity levels (the number of sales agreed) were up over the month,
however, rising by 5.9 per cent (4.3 per cent in August) but with the
number of properties listed falling by 2.5 per cent and the number of
buyers decreasing by 2.5 per cent, supply continues to outweigh demand
meaning that further house price falls are likely, says Hometrack.

There was a slight dip in sales price as a percentage of asking price
to 93.4 per cent compared to 93.6 per cent in August's report, an
indication that it remains a buyers' market with vendors being forced
to accept lower offers to secure a sale.

The length of time taken to sell a property dropped slightly from 6.4
weeks in August to 6.3 weeks, and the number of viewings per sale was
down from 14.4 in August to 14 in September, both indicating that
properties are not sticking on the market for as long, according to

"Gradual Downward Trend"
Commenting on the report, John Wriglesworth, Hometrack's housing
economist, says: "House prices have continued along their gradual
downward trend this month, falling by a further 0.1 per cent.

"London has been hit hard by house price deflation although there are
no signs of an imminent crash. If activity continues to increase, and
buyers come back to the market in force then prices should eventually
continue their upward trend. However, while supply continues to exceed
demand house prices will fall.

"House prices in the capital are still well above the national
average, making it difficult for first time buyers to get on the first
step of the property ladder.

"Although incomes are rising and mortgage lenders are relaxing their
lending criteria, confidence is still low. A further rate cut is
needed to help boost confidence across the capital. Our London house
price forecast for 2005 remains at -five per cent."

> Home prices top out?
> Cost of new houses levels off in area after meteoric rise
> By Andrew LePage -- Bee Staff Writer
> Published 2:15 am PDT Friday, October 7, 2005
> Story appeared on Page A1 of The Bee
> Price appreciation for new homes in the Sacramento area has slowed
to  a crawl, with more builders tempering or skipping price increases
and offering greater incentives to attract buyers.
> The median price of a new home sold in the capital region was
$459,990 in the third quarter, unchanged from the previous quarter and
up 3.4  percent from one year ago, according to the Gregory Group, a
> Folsom-based market research firm.
> ========================= 
> > -----------
> > October 08, 2005
> > Asking prices drop by nearly 15% in 16 suburban Boston towns
> > 
> > Price_reducedHomeowners in Greater Boston and elsewhere continue to
> > expect "big real estate gains" despite a stunning revelation this
> > week: "asking prices in 16 MetroWest towns have dropped by nearly 15
> > percent" since August, according to MLS statistics.

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