28
Mar
March sees 'another drop in house prices'
Property price inflation dipped in March to stand at its lowest
level for more than a decade, according to new figures released by
Nationwide.
House prices dropped by an average of 0.6 per cent during the
month, the bank noted, resulting in an annual inflation rate of 1.1
per cent.
While Nationwide had previously suggested that prices would stay
flat in 2008, chief economist Fionnuala Earley said that a
reassessment had to be made in light of the new statistics.
She asserted that the situation is now more "downbeat" and that a
fall in the market is likely to be seen in the time ahead.
"A moderate fall in prices at this stage should not be unwelcome
and should help to ensure greater stability in the market going
forward," she commented.
In the recent past, speculation that prices were to rise would have
led to demand but this will tail off, she added, as the prospect of
lower prices becomes reality.
By contrast, Rightmove recently revealed that asking prices were up
by 0.8 per cent in the five weeks leading up to the middle of
March.