House Prices Rise, Fall, Remain Static Overall

House prices have risen for three months and fallen for three months, but have remained static overall, as shown by the latest figures from Nationwide.

The Nationwide House Price Index for April showed that house prices fell by 0.2% in April with the average home now valued at £165,609.

This means that prices are now 1.3% lower than twelve months ago – proof positive that the property market has remained stagnant for the last year.

“It is not unusual to see a pattern of modest monthly increases and decreases when the market is fairly static, as has been the case since last summer.”, said Robert Gardner, Nationwide’s Chief Economist.

Lingering problems in the economy with household budgets under pressure from the rising cost of living and job uncertainties, point to a continued period of stagnation in the market as Robert Gardner explains:

“There is still little evidence to suggest that price declines will accelerate in the months ahead. While the UK economy only managed a modest bounce-back at the start of the year, after the weather-induced contraction in late 2010, the economic recovery is expected to gather momentum.”

“Together with continued low interest rates, a gradual improvement in the labour market should help to provide support for housing demand, while limiting the number of forced sales.”

“Nevertheless, a strong rebound in the market remains unlikely as the recovery is still expected to remain modest by historic standards. In our view, the most likely outcome is that house prices will continue to move sideways or drift modestly lower through 2011″

MoneyHighStreet.com Comment: Are houses selling in your area? In Chelmsford, where we are based, there has been a flurry of sales, particularly if vendors are being realistic with their asking prices, however many properties are lingering on the market too, or find buyers only to have the chain collapse.

Overall, the market in this area does indicate a degree of overall stagnation.