Market cools as property prices tumble

first_img whatsapp Share AVERAGE property prices have fallen 1.2 per cent in the last three months, according to the latest Halifax house price index.The closely watched index from the Lloyds Banking Group-owned lender showed house prices rose 1.8 per cent in October which helped to partially reverse the 3.7 per cent decline from the previous month. But the quarterly decline in house prices is still the sharpest fall since the middle of last year.The drop is not as steep a decline as some previous falls seen over the last two years, however, which were sometimes as much as five per cent during the height of the economic downturn wiping around 25 per cent off property prices in just one year before recovering. House prices were also only 1.2 per cent higher than a year ago, down from an annualised rise of seven per cent back in May.“An increase in the number of properties for sale in recent months, together with a decline in demand has put some downward pressure on prices,” Martin Ellis, Halifax’s chief economist, said. “We do not believe that prices are set to fall sharply over a sustained period. Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners.”However, Howard Archer, economist at IHS Global Insight said he expected further falls in house prices over the next twelve months predicting they could decline by as much as ten per cent. The figures from Halifax are in line with those produced by the Nationwide building society, the other closely watched house price index, which showed house prices over the last three months had fallen 1.5 per cent but had risen 1.4 per cent in October year-on-year.The most recent data from the Council of Mortgage Lenders (CML) also showed the number of mortgage approvals for last month were less than half their average prior to the economic downturn. First-time buyers are on average being asked for a deposit of around 20 per cent from lenders, according to the CML. KCS-content Market cools as property prices tumble by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStorymoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comcenter_img More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comPuffer fish snaps a selfie with lucky divernypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comKiller drone ‘hunted down a human target’ without being told‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comUK teen died on school trip after teachers allegedly refused her Tags: NULL Show Comments ▼ Thursday 4 November 2010 11:05 pm whatsapplast_img read more