House prices down - for sixth month

ESTATE agents have added to the gloom in the housing market by confirming prices dropped for the sixth month running in November. Figures released by the National Association of Estate Agents revealed a 1.1% drop during the month. Annually prices were up 4.8%, the lowest year-on-year increase this year.However, the association predicted the property market would bounce back early next year as buyers take advantage of lower prices. The proportion of first-time buyers rose again during the month to 17.1% confirming that new buyers are finding it easier to climb on to the ladder. NAEA president Richard Hair said: 'The market is now in its sixth month of this price correction and, although increases are at their lowest rate for many years, the gloom merchants are going to be left disappointed that the slowdown will not morph into a crash. 'The market is inevitably slow at this time of the year as buyers and sellers have their minds on other matters over Christmas and the New Year.' NAEA figures showed supply is starting to exceed demand as new build properties flood the market. Hair added: 'Currently, many buyers are continuing to sit on the fence in the anticipation of further drops in prices. Sensible asking prices are key to a successful sale.'