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Property prices decline for first time in 2 years

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  • Property prices decline for first time in 2 years

    According to a survey by the property research specialist, Hometrack, property prices declined in the UK for the first time in 2 years this month. The average cost of a home in England and Wales fell 0.1% to £176,100 from September said Hometrack. Prices in the capital fell 0.5%, the most of any part of the [...]

    More: Property prices decline for first time in 2 years

  • #2
    Dont prices tend to fall in the winter normally? This could just be the seasonal cycle showing through
    http://www.renovatealerts.com/

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    • #3
      It is very true that how prices fell a little, but this was the plan! The recent interest rate rises are starting to take affect and that is a good thing for our property market at the moment. We need to give first time buyers a chance to catch up. That's not to say that I think prices will reduce much more. I believe our property market is very stable and everyone should stop panicking!

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      • #4
        The fact is while demand exceeds supply, prices will hold their own. Basic economics.

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        • #5
          Originally posted by pds999 View Post
          The fact is while demand exceeds supply, prices will hold their own. Basic economics.
          Problem is demand is falling. The BTL market has completely dried up as property is simply no longer a good investment; and most 1st time buyers are taking a wait and see approach waiting for the crash.

          The lack of confidence in the market is certain to lead to further price falls, and could lead to a crash.

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          • #6
            It's the BTL market that's a kicker - that represents about 10% of property sales, and the BTL market is drying up because of a combination of credit crunch and lowered returns.

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            • #7
              Originally posted by brian View Post
              It's the BTL market that's a kicker - that represents about 10% of property sales, and the BTL market is drying up because of a combination of credit crunch and lowered returns.
              Agreed.

              Especially since the BTL market could go from being a net buyer to a net seller - decrease demand, increase supply.

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              • #8
                If the BTL market dries up, and it does become a net seller market, I think this is where the first time buyers would move in and help support the market overall, against affordability concerns. But the overall result would still be lower demand and increasing availability - I don't see the higher end of the market escaping that so easily.

                2c - and welcome to HomeMove.

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                • #9
                  What would be the trend of prices in the next following years?
                  http://www.bestmortgage-refinancing.us/

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                  • #10
                    Downwards I think.

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