Fall in Home Prices for First Time in Fifteen Months
The number of houses put up for sale has continued to rise. Those seeking to buy have fallen. The result was the fall of house prices in England and Wales according to data supplied by Hometrack.
According to the data, house prices fell in July for the first time in 15 months. Hometracks director of research, Richard Donnell, said the monthly drop marked a turning point and theat there would be more falls likely. "Further modest house price falls are inevitable over the second half of the year as the volume of homes for sale continues to rise and demand remains weak," he said. "It is hard to identify factors that will drive any marked increase in demand for housing in the coming months." The data collected in a survey of estate agents and surveyors revealed an average fall of 0.1 per cent in house prices in July. The fall in the price of homes means a fall in the value of equity in homes. Along with the threat in the economy of possible increases in the base rate this makes the time right for those thinking of remortgage. For those thinking of buying, lending has tightened and qualifying is more difficult, but with the abundance of homes available for sale and prices affordable a buyer will find the market in their favor.