Further falls in house prices are ‘inevitable’ and will continue into the new year, according to the latest report from property specialist Hometrack.
The forecast came as the index, which surveys estate agents across England and Wales, showed property prices dipped by 0.9% in October – the biggest monthly fall since January 2009.
But Hometrack says it expects a modest drift in the market and not a repeat of the dramatic slump of 2008 to 2009.
‘A stand-off is beginning to emerge between buyers waiting for prices to fall further and sellers being unrealistic on the price they’re willing to accept,’ said Richard Donnell, Hometrack’s director of research.
‘Further price falls are inevitable in the run up to Christmas and are likely to continue into the first half of 2011.’
‘We expect a modest adjustment in prices rather than a return to the double digit falls seen in 2008.’
After registering robust gains as house prices bounced back from their recent lows in spring 2009, the property market has come off the boil in the past six months.
The number of transactions remains low and Hometrack said that house prices were likely to continue to slip into the first half of next year.
You can read more here:http://www.fmwf.com/taxonomy/personal-finance/2010/11/falling-house-prices-are-inevitable/
Follow me on Twitter