News
House Prices fall back in July
Demand from house buyers has remained a little subdued according to the Nationwide and House prices fell back by .5% in July
Despite record low interest rates, it seems that a combination of poor mortgage availability and concern about the future economy have deterred some buyers.
Encouragingly, last weeks report on GDP figures showed that the UK economy recovered faster than expected with the growth seen comparable to early 2006 although TV and national press continue to seem keen to repeat fears of a double dip recession.
Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said: “House prices fell in July for the first time since February. The price of a typical UK property fell by a seasonally adjusted 0.5% month-on-month, after having been unchanged in June. The 3 month on 3 month rate of change - a smoother indicator of the near term price trend - fell from 1.7% in June to 1.3% in July, significantly below the peak of 4.0% reached in September 2009. There was also a sizeable drop in the annual rate of house price inflation from 8.7% in June to 6.6% in July, due in part to the strength of house price gains in the same month last year.”
Simon Rubinsohn, RICS chief economist said “Data from the Nationwide suggests that house prices fell 0.5 per cent in July. This decline brings the Nationwide series more into line with the broad trend being signalled by most other price indicators. The softer tone to the price data is consistent with evidence provided by the RICS Housing Market Survey which is now showing new instructions to be outstripping new buyer enquiries. Put another way, fresh supply of property to the market is now running ahead of demand.
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