House prices slumped by 0.9 per cent in August, falling for the 11th successive month and adding to the gloom currently surrounding the market.
According to the latest national housing market survey from Hometrack, average prices are down by 5.3 per cent on a year-on-year basis, the lowest level since the survey began in 2001.
The proportion of asking prices being achieved now averages 90.7 per cent, marginally down over the last month, but significantly down on the 95.7 per cent average recorded in spring 2007.
Hometrack research director Richard Donnell, said: “While demand remains weak with continued falls in new buyer registrations over August, a small but growing proportion of agents are reporting some improved signs of buyer interest on the back of lower prices and a modest reduction in the cost of mortgages.”
The survey showed a continued slowdown in the number of homes coming onto the market, particularly over August when supply fell by 0.7 per cent.
Donnell added: “Although in part a seasonal trend, this also highlights a reversal in the mentality of sellers in these weaker market conditions.
“A recovery in the housing market – even back to zero monthly growth – is still some way off.”
While average time on the market continues to rise to 11.3 weeks, the number of viewings to achieve a sale fell for the first time in 11 months.