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News: House Prices Fall 0.5%, Says Halifax

Wed, 08 Jul 09

House prices fell back in June by 0.5% according to latest figures from the Halifax.

The figures come in stark contrast to increases shown in a number of recent house price indices. This includes the Halifax’s own figures for May, which showed a 2.6% rise and figures released by the Nationwide building society last week that showed a 0.9% rise in June.

Despite this latest fall in prices the Halifax says that the annual rate of decline has eased slightly, from 16.3% last month to 15% in June.

The Halifax’s chief economist Martin Ellis says that the latest figures indicate that the housing market is stablising rather than heading for further falls, however economic conditions still remain uncertain.

He said: “On a quarterly basis, the 1.9% fall in house prices in the second quarter was the smallest since 2008 quarter one. These figures provide further evidence that the underlying pace of house price decline is easing.”

Other evidence includes Home.co.uk’s recent asking price index, which showed that the typical marketing time for a property for sale fell from 184 days in May to 129 days during June.

Latest figures from HM Revenue & Customs also showed that completed sales in May were at their highest level since October 2008.

Ellis added: “Improvements in affordability and low interest rates have stimulated housing demand. This, together with a low level of properties available for sale, has helped to stabilise activity and reduce the underlying rate of house price decline in recent months.”

 

See also: Asking Price Index, House Prices and Trends by Town and Postcode, Mortgages, Guide to the Halifax House Price Index

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