According to the latest monthly release from Nationwide, the housing market is still refusing to cool.
Commenting on the figures, Fionnuala Earley, Nationwide's Group Economist, said: "House prices jumped by 1.4% in November as the housing market refused to cool. As a result, the annual rate of growth rose to 9.6%, up from 8.0% last month. This is the highest rate of annual house price growth since February 2005 and means that house prices are £15,046 higher than twelve months ago, the equivalent of a £41 rise per day. This brings the price of a typical house up to £172,185.
The second half of 2006 has so far seen average monthly increases of 1.1%, almost double the 0.6% in the first half of the year and much higher than the average 0.2% per month in 2005. Looking forward, current housing market indicators are firm and do nothing to dent the prospect of further rises in house prices in the very short term. House purchase approvals increased again in October to reach their highest level since December 2003 when prices were increasing at an annual rate of 15.6%. Some cooling seemed to be in prospect when the growth of buyer enquiries fell quite sharply in September, but this pause in demand was short-lived. At the same time, stocks of properties for sale are at a two-year low leaving buyers chasing relatively few properties. With instructions still falling, there is no immediate improvement in supply conditions in sight."
