A troubled start to the property market in 2017 has seen house prices in South Shields fall by nearly five per cent.
The good news for home owners from figure released by KIS Housing Now - which has a base in South Tyneside - is that the selling price is still five per cent higher than it was this time last year.
The 4.9% drop is in line with the regional average
Ajay Jagota, founder and managing director of the sales and lettings firm said: “January is the time when people tend to view a lot of properties, having made a New Year Resolution to move home, but the actually buying tends to come later.
“As such we would expect to see house prices fall back at this time of year – not least as they fell by exactly the same amount last January.
“The long-term trend for property values in the North East is incremental, sustainable growth – as shown by the year-on-year rise in values of 5%.
“There’s also increasing evidence that investors are turning away from London and looking north. Increased investor demand may increasingly impact on North East property prices in 2017, for the first time since the early 2000s.”
The main findings if the survey are:
* More than £5000 has been lost from value of typical property
* House prices remain 5% higher than this time last year.
* A typical North East home will currently cost £163,591 – 5% higher and £4836 more than in January 2016.
An analysis of the rental market shows that costs in the North East rose to an average of £584 in January - £32 more per calendar month than this time last year.
Jarrow - at £442pcm - remains the cheapest place to rent in the North East out of the areas surveyed, while Durham City - £1001pcm - remains the most expensive.
Mr Jagota added: “It’s been claimed this week that demand for rental properties is at a two-year low, but that’s not something we’ve much evidence of in the North East, where rising rents and returns for investors indicate strong demand.