Price of new homes on the rise

The price of new homes is continuing to rise in spite of market turbulence, research has revealed.

Online estate agent SmartNewHomes.com said the value of new homes had risen by 0.8% in November. An overall jump of 0.6% was recorded for the final quarter of 2007.

The figures buck the trend across the housing market, where asking prices are thought to have fallen by 3.2% between November and December.

SmartNewHomes said rising prices and this month’s interest rate cut pointed to a “steady start” for the market in 2008.

Managing director David Bexon said: “While city bonuses may take a knock this year, something which is likely to be reflected in a reduced demand for top end properties including new, luxury penthouse apartments, I am confident that the market will recover from this and any current turbulence.

“I would expect to see new home prices rise steadily throughout 2008, finishing with annual price growth in the region of 2-3%.”