What do the house price trends in May indicate?

Posted under General by Michael

House prices in England and Wales continued their fall for the eighth consecutive month as potential purchasers shunned the property market even during the traditional spring buying season, according to a survey. The survey pointed out the 0.5 per cent drop in May prices followed a 0.6 per cent fall in April. This meant the average cost of a home was nearly 1.9 per cent cheaper than in May 2007, the fastest rate of decline recorded since November 2005.

The survey found the supply of homes continued to increase, with the 20 per cent jump recorded in the number of homes on the market (since February) further pushing down prices. There was a 6.7 per cent fall in the number of buyers who registered with agents over May, following a 2.8 per cent decline over the previous month. According to market analysts, the situation was an outcome of what they termed ‘buyers’ strike’.

Experts say it is too early to conclude whether the ‘slightly smaller monthly fall’ registered in May means that the pace of fall in prices was now moderating.

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