House Prices Increase Slightly During 2010

House prices increased slightly in 2010 the latest figures from the Nationwide Building Society show.

Prices rose by 0.4% in December, bucking the trend in falling values seen over the last three months, however this rise accounted for the total annual price inflation.

House prices are only 0.4% higher than they were at the end of 2009, according to the Building Society. This confirms the view of many industry experts who have been predicting that the property market will be largely flat throughout the year.

Although December saw a slight rise in house values, this is doesn’t signal a change in the modest trend downwards says Martin Gahbauer, Chief Economist at Nationwide:

“When house prices are trending down only modestly rather than decisively – as has been the case in recent months – it is not unusual to a see a mixed pattern of monthly declines and occasional increases.”

“Despite December’s increase, house prices have fallen in four out of the last six months and it would be premature to suggest that the recent downward trend has been broken on the basis of one month’s figures. However, the December figures do underscore the fact the current downtrend is only very modest, particularly when seen in comparison to the second half of 2008.”

The outlook for 2011 remains uncertain, although many economists are predicting house prices to continue their trend downwards with falls of 5% expected by many throughout the coming year. Some economists, however, are predicting that house prices could tumble by up to 10%.