House Prices Fall 1.9%
03 April 2009
LONDON (Reuters) - House prices fell 1.9 percent in March, taking the 3-month annual rate of decline to 17.5 percent - the first improvement on this measure since August 2007, according to the Halifax house price survey. The figures were in stark contrast to data from rival lender Nationwide on Thursday, which showed house prices rose by 0.9 percent last month, the first increase since 2007.
In February, house prices fell 2.3 percent on the month for a 3-month annual decline of 17.7 percent according to Halifax.
House prices in the month of March alone compared with a year ago were 17.6 percent down and the average price of a home came in at 157,326 pounds.
Prices have now fallen by 21 percent from their peak in August 2007 and analysts said further falls were to come.
'While there are one or two encouraging signs in the housing market, it has not turned yet -- prices have further to fall,' said Colin Ellis, an economist at Daiwa Securities.
Halifax said there were tentative signs the housing market was starting to stabilise, albeit at a very low level. But it also reckoned prices had further to fall this year.
'Conditions in the housing market are likely to be tough during the remainder of 2009 despite the improvements in affordability,' said Halifax chief economist Martin Ellis.
Ellis said the plunge in house prices would help the market find its floor eventually and lower mortgage rates would also help. However, those positive effects would be offset by the weak economic outlook and rising unemployment.
'That's one of the reasons we're starting to see early indications of stabilisation in activity. As property becomes more affordable, that will in time dig the foundations for a recovery.'
|
|
