According to recent data collected over the entire nation, the housing market has fell, there has been around a 0.5% decline in the market. Local house prices fell for two months in a row as of August. The market is trying to ease inflation in the marketing to try to suppose the industry; however the leading mortgage lending Halifax says the industry is barley “staying afloat”.
According to Halifax, the average price of houses last month was around £150,000, this is lower than it was the previous month. This new comes as a shock as it seems average price in the industry is back where it was at the end of last year.
Even though Halifax believes easing inflation in the industry will be able to provide more buying power and increase prices, they believe the entire market will not see much of an increase heading into the coming year.
However, a report by Nationwide showed that housing prices actually increased back in August, which was one of their highest gaining months in over 2 years. They also reported the yearly decline in the market, although their report was a bit lower than Halifax.
The reason for the difference in finding is simply because the two companies Halifax and Nationwide use two different methodologies. One calculates the change in price over a three month average and compares to the previous year.
Banks have had some influence over the unstable housing market, as they are hesitant to give out mortgages. The Chief Economist at Halifax said “They believe an increase in the buying ability, which is aided by lower inflation should be able to sustain the current demands in the industry for the coming months. However, don’t expect any real increase for the rest of the year”.
A high ranking mortgage broker for SPF PC said “We expect to see an increase in sales this month, this is a trend we have noticed over the past couple of years, as home buyers try to get into their new home before the holidays”.