Housing market slides in March

[Mary]

House prices tumbled in March to record their biggest monthly drop in more than 15 years, according to data published on Tuesday by Halifax, the country's biggest provider of home loans.

 

Halifax, part of banking giant HBOS, said that house prices sank by 2.5 percent in March from the level the previous month. That was the biggest monthly fall since September 1992 and followed a 0.3-percent drop in February 2008.

 

The average cost of a property in Britain fell to 191,556 pounds in March, compared with 196,649 pounds in February, Halifax added.

 

In annual terms, house prices rose in 1.1 percent in March from the same month of 2007. However, that compared with a 4.2 percent increase in February 2008.

 

Halifax added that it was forecasting a low single digit decline in British house prices in 2008.

 

"Overall, we expect there to be a modest fall in UK house prices this year," said Halifax chief economist Martin Ellis in comments published alongside the data.

 

"Any declines, however, should be viewed in the context of the significant price rises over recent years."

[KeithR]

I was looking at a new build in Widnes last year.

The Price of a large detached house was ?595,000

I passed by the house 2 weeks ago and saw it was up for sale. I checked on the internet and the value had shot up to ?710,000

[observer]

Think we'll be going through a period of evictions and negative equity - so much for Gordon's prudent management of the economy.

[wolfie]

Originally posted by Keith R:

I was looking at a new build in Widnes last year.

The Price of a large detached house was ?595,000

I passed by the house 2 weeks ago and saw it was up for sale. I checked on the internet and the value had shot up to ?710,000

Keith - have you being looking on the same development as me? I think it was called Regents Park or Regency Park

[Paul Kennedy]

They might be asking that price......doubt if they will get it.

[indy]

sit tight it will all bounce back soon enough .... these blips happen every so often.

[observer]

Slightly more than a "blip" this time; this phenomena is occuring throughout the Western Economies.

[indy]

exactly what i said, just sit tight and in 18 months prices will be on the up and up again. Having said that my house was valued a month ago and even after owning it for just 12 months it is still worth far more than what it was when i bought it and the increase is far higher than the mortgage payments I have made in that time

[Geoffrey Settle]

Well said James afterall it's all relative - you must have made a wise choice.

[asperity]

The housing market isn't uniform across the country, so in some places, such as the NW, prices are still rising but at a slower rate than before, in others they are dropping rapidly. On average the trend is downwards.

[observer]

Not so Indi; the Housing Professionals interviewed on TV, ALL gave a pessemistic forcast of a 5 year down-turn in the market of between 10 - 30%; which could be extended further IF accompanied by a downturn in the real economy.

[indy]

don't worry time will tell!!!

[observer]

Personally, I'm not worrying: but for those who took out unaffordable mortgage repayments for over-priced houses - there's going to be a great deal of trauma.

 

[ 09.04.2008, 13:40: Message edited by: observer ]

[Paul Kennedy]

But the most foolish are those who remortgaged and spent the money on a new car...or place in Spain...some of which are now being demolished without compensation or given the downturn in the Spanish economy are no longer worth anywhere near what they paid for them.

[Paul Kennedy]

Originally posted by indiana James:

Having said that my house was valued a month ago and even after owning it for just 12 months it is still worth far more than what it was when i bought it

A valuation is one thing, actually being able to sell it at that price can be quite another.

 

As I've always said, a house is first and foremost a home...not an investment vehicle.

 

By and large those people who are able to keep making the repayments will be OK irrespective of a decline in house prices...provided that they are not looking to move.

 

I understand a number of larger builders are mothballing sites and national estate agents are closing branches.

 

[ 09.04.2008, 15:54: Message edited by: Paul Kennedy ]

[observer]

Seems the only politician who talks any sense about the economy nowadays is Vince Cable - can't think why the LibDems didn't keep him on as Leader? :confused: