04 March 2011

Rug Pulled From Under House Prices This Month

House prices have fallen at the fastest rate since 2009. In this month alone prices have dropped by 0.9%. It appears that demand for properties has fallen as fewer and fewer people wish to move, therefore prices have started to head south.

A further problem is that many people cannot obtain mortgages. Banks are reluctant to lend to families with children under the current economic conditions.

Perhaps falling prices will provide an opportunity for young earners to get their foot on the property ladder.

One market commentator has drawn attention to the volatility of the markets saying that observers should not watch sudden changes in the market but should consider the overall market trend. 'We expect this trend to continue for some time to come. It is best to try and draw an overall impression on all the data available relating to both house prices and activity”.

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