The combination of rising sales volumes and a dwindling inventory of homes for sale saw house prices rise again in the latest data. Depending on which of the major house price indices we look at, seasonally-adjusted prices have only failed to rise in at most one month this year. And it now appears that the strength of house prices is beginning to be reflected in land values. The data are released with a considerable lag, but we learnt this month that land values rose by 7.5% q/q in Q1.Growing demand for new homes, many of which are being built with the rental market in mind, should ensure that, like the house price recovery, the land value recovery is sustained.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services