28 Apr What’s going to happen to houses prices?
Posted at 10:38h
UK house prices fell for the second month in a row during April, according to the Nationwide.
The building society said prices dropped 0.4% in April, and the annual rate of price growth slowed to 2.6%, the weakest pace for almost four years.
It said the slowdown may indicate that households were reacting to the “emerging squeeze on real incomes”.
“Affordability pressures” in some parts of the country were also having an impact, Nationwide added.
“Various data suggest that the latest slowdown in house prices may be part of a broader trend,” said Robert Gardner, Nationwide’s chief economist, noting that retail sales growth had slowed “markedly” in recent months.
“Household budgets are coming under pressure, as wage growth has moderated and inflation has accelerated.”
It’s anyone’s guess whether prices will stay static or perhaps begin to slowly fall.
The only thing that is almost certain is that we need not fear a dramatic fall. House prices are not going to fall like a brick but the rate of increase cannot go on indefinitely as we would reach the stage where first time buyers could not afford to get on the ladder. Without first time buyers the whole market comes to a juddering halt; this not being in anybody’s interests.
So my feeling is this.
If you are considering moving, then now would be a good time to start the ball rolling, because if you wait till prices actually fall you could end up taking a major hit and who wants to take that risk.
in 2008Before you say that prices won’t fall remember what happened in the UYS where experts were equally sure that property values would continue rising. Since 2008 values in the US have fallen by as much as 50%. That won’t happen here but many people feel that we will see a gently decline in UK property values over the next few years.