House Prices Only Stabilizing, Not Falling- Nationwide

Referring to the recent dip in house prices, Mr. Martin Gahbauer, chief economist, Nationwide Building Society, said that the current correction was not an unhealthy development.

The average house price is around £166,507¬†and the house price appeared to have remained constant after a steep rise last year.Mr. Gahbauer said that recent market trends remain consistent with an unwinding of the supply-demand imbalance that drove up prices for much of the last year. More sellers have returned to the market, creating a greater selection of properties to choose and buyers have more bargaining power, he added.

Some other economists hold the view that the house prices may fall further within the next twelve months before going to stabilise.However all of them agree that the effects of a fall will be felt differently across UK.Those living outside of London and South East may be affected slightly because of the spending cuts and lack of government support.

Mr. Richard Hatch of the property consultancy firm, Carter Jonas, said that the housing market was simply readjusting after getting ahead of itself.

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