Housing market 'gently softening'

[Lucifer Box]

Lucifer, that was sh1t.

That's a load of cr@p, Stackers.

[stackpole]

My stools have been gently softening since I had prunes for breakfast. Does that count?

Lucifer, that was sh1t.

[Lucifer Box]

My stools have been gently softening since I had prunes for breakfast. Does that count?

[MrsGoof]

We've just had an offer accepted on a lover 2 bed victorian house which has been well priced.

so plenty of action then for you

[BlasterBates]

I'm currently house hunting in Cornwall...

You're looking in the wrong place, try Sunderland, Oldham or if you want to be in a tourist spot with white sandy beaches, what about Blackpool, prices there are much more reasonable.

[sparklelard]

I'm currently house hunting in Cornwall and I have come to the conclusion that some people are living in cloud cuckoo land where house pricing is concerned.

Over the last four weeks my wife and I have seen over 20 properties and have never seen so much sh1te. One property looked like there had been a murder, i.e. ominous dark red stains on the carpet, and the venders asking a fortune for it.

We've just had an offer accepted on a lover 2 bed victorian house which has been well priced.

[fish]

who gives a toss, i live in a shed in wandsworth but cant see sense in buying an overpriced gaff in london just to work for the man, rock on

[Francko]

http://news.bbc.co.uk/1/hi/business/4723359.stm

Housing market 'gently softening'

Market activity is improving, the Nationwide says
UK house prices rose slightly in July but "the overall picture remains one of a gently softening market", according to the latest survey by Nationwide.
Prices rose by 0.2% in July, with the average house costing £158,348.

However, the annual rate of house price inflation fell to 2.6%, the lowest rate since May 1996, the society said.

The Nationwide said there were signs that housing market activity was recovering, although transaction levels are still well down on last year.

It noted that estate agents had reported buyers returning to the market and sellers willing to negotiate on prices.

"This could be the start of some unwinding of the stalemate between buyers and sellers and see the return of some liquidity to the market," said Fionnuala Earley, Nationwide's group economist.

During the three months to the end of July house prices rose by 0.6%, Nationwide added.

Wages catching up

The Nationwide said that the annual rate of house price growth had now fallen below wage growth for the first time since May 1996.



It also said that a cut in interest rates - which is expected by many analysts when the Bank of England meets next week - would provide some stimulus to the market.

However, it added that a rate cut "is unlikely to cause an acceleration in the rate of house price growth".

The UK property market has been cooling steadily over the past year, but most housing experts do not expect a dramatic slump in prices.

On Monday, a study by the Centre for Economic and Business Research predicted that prices will fall 5% by 2007 but said that fears of a crash have been overdone.

However, experts at Capital Economics are more pessimistic and expect prices to fall 6-7% by the end of the year.

The Nationwide is not expecting a slump in the market, but noted that the overall strength of the economy was key and said "current uncertainty makes the future path for the market difficult to read".

"Higher levels of household debt seem to have made consumers more sensitive to weakening economic news," the Nationwide said.

"At this point in time we expect the path of house prices to continue to soften gently for some time.

"But the risk to this lies in the overall path of the economy."