British House Prices Fall For 11th Month
House prices in England and Wales fell for an 11th consecutive month in May, leaving them down 2.3 percent on a year ago even though property transactions picked up, a survey showed.
Average house prices based on agreed sales by estate agents fell 0.1 percent on the month in May and marked the worst annual performance in the five-year history of research company Hometrack’s survey of the property market.
Hometrack cut its 2005 house price inflation forecast to zero from 3 percent, following a similar move by the Nationwide building society last week.
“As the number of new instructions continues to increase, and oversupply of properties means that it is still a buyer’s market and prices are still decreasing,” the report said.
The fall left the average residential property price at 161,900 pounds, down from 162,100 pounds in April.
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Yes, the UK bubble could even be worse than ours, and looks like its bursting now.
Some nasty looking charts here:
http://www.graphicinvestor.com/econo/UK/MORTGAGES/Mortgages.htm11 consecutive months of falls doesn’t sound too healthy to me. Also, 2.3% doesn’t sound like much, but if inflation is say 3%, that’s a fall of >5% in real terms.
Somehow I can’t see this chart stabilising, or gently falling back to earth:
http://www.housepricecrash.co.uk/forum/index.php?act=Attach&type=post&id=501
It could happen, but it seems extremely unlikely.Going to be a lot less immigrants and pounds flowing into australia soon. Where will the next level of buyers come into the market to support the perth and se qld markets?
true any fall is not good but hopefully investors are not geared to the level where they can’t weather a 5% fall in values.
If investors build up a portfolio over a number of years these corrections will have little impact.
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