House prices have plunged over last year
September 15, 2008 by admin
Filed under News, News-Loans
Over recent months homeowners and industry officials have seen one report after another that has shown how house prices are falling steadily on a month on month basis, and there has already been a significant fall in the value of homes compared to last year before the housing bubble burst. It has now been said that property prices have started falling at the fastest pace since the 1990s, and thousands of pounds have been wiped off the value of the average house price over the past year.
One industry official stated: ‘The price of a typical house is now £172,415. This is over £13,500 less than it would have cost at the top of the market and over £11,500 less than this time last year. However, the strength of house price growth up until last year means that prices are still 4% higher than two years ago and 9% higher than three years ago.’
She went on to state: ‘It seems unlikely that there will be any rapid turnaround in housing market fortunes in the coming months. However, as prices continue to fall, affordability measures become more favourable for those in a well-financed position to buy.’
According to one industry official house prices could fall by as much as a quarter compared to the peak last October, and he stated: ‘I am wondering if this is now a little conservative. If the economy starts to tank and unemployment rises sharply - and it has increased for the last four months - that would have a large knock-on effect for the housing market, as a number of distressed sellers enter it.’
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