Average house prices as reported by both the Halifax and Nationwide have shown growth over the last couple of months.
Despite the country's economic position it seems that people are still prepared to fork out for their dream home.
Between January and July this year both lenders have seen month on month increases in average house prices. Halifax from £163,256 to £169,624 and the Nationwide from £162,262 to £170,825.
As you can see from the graph below, which is expanded so as to show the trends more clearly, the upward trend in Nationwide and Halifax average house prices over the start of this year has been quite marked. But the Land Registry index does appear to be lagging – note that the Land Registry figures for July have not yet been issued.
When seen on a larger scale in the next graph the upturn in prices looks a little less pronounced but is still there nonetheless.
The first graph above also shows the ever upward trending average Rightmove asking prices, which have now passed through the £250,000 barrier. But when the Rightmove figures are compared to an average of those from the Halifax and Nationwide you can see that asking prices are rising faster than the actual prices seen by the lenders.
As can be seen, at the start of 2007 asking prices were about 23% above the prices seen by Nationwide and Halifax. But now asking prices are some 50% higher. That seems to show an ever increasing optimism by vendors and agents as to the prices their houses command.