Nationwide – 1% Drop In House Prices Feb 2010
Nationwide Say House Prices Fall by 1%
House prices have fallen in February by 1% according to Nationwide. This is seen to be the first time prices have fallen since last April. The average price has dropped from £163,481 in January to £161,320.
Nationwide have conceded that it is too early to say if this drop is the start of a trend. Two major factors which could have an influence on the figure are the end to stamp duty holiday on homes up to £175,000 and the extraordinary weather conditions across the UK.
Nationwide’s chief economist, Martin Gahbauer, said: “There is evidence from a range of indicators that the market may have lost momentum in early 2010 as the stamp duty holiday ended and house hunters were obstructed by the icy weather.
“New buyer enquiries dropped sharply in the New Year and there was also an associated drop in the number of new mortgages taken out by homebuyers in January. This drop in demand seems to have fed into agreed prices during February.”
He added: “At this stage, it is difficult to gauge how much of the drop in housing activity is attributable to one-off factors and therefore whether February’s fall in prices is just a temporary blip or the start of a new trend.”
A genuine fall in house prices would be welcome news to first time buyers struggling to get on the property ladder.
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