Slight increase in house prices reported for May
According to figures that were recently released in relation to UK property values house prices for the month of May edged up slightly from April, rising by 1.2 percent for the months.
Some industry officials have said that these figures suggest that there is increased activity in the UK housing market. The figures were recently released by the Nationwide Building Society.
The annual rate of decline in house prices for April was already at its slowest in nearly two years, come in at around 15.5 percent. However, the figures show that for the month of May this annual decline slipped even further, coming in at 11.3 percent. The average house price is now estimated at £154,016.
Over the past three months property prices have fallen by just 0.5 percent according to the figures, which is the lowest quarterly decline since January of 2008.
However, despite the encouraging figures officials are not yet prepared to report a turnaround in the mortgage and property markets.
Martin Gahbauer, Nationwide’s chief economist, said: “During the downturn of the early 1990s, there were many months during which prices rose, only to fall back down again in subsequent periods. In the current downturn, the combination of rapidly rising unemployment and tight access to credit implies that the last of the price declines has probably not been seen yet.”
Another industry expert said: “The rollercoaster ride for house prices continues. Up in March, down in April, back up in May. This volatility is typical of a housing market dragging along the bottom and mirrors the testing economic conditions.”
Another added: “First time buyers should not be unduly worried at this point, as there is a good chance prices will fall again slightly in the quieter summer months. However, anyone seriously considering getting onto the property ladder needs to commit in the next six to nine months or they could well miss the bottom.”
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I wonder if prices will rise or fall again in June. Now is the time to buy with prices so low maybe things are picking up a bit, only time will tell.