Sunday, February 7, 2010
House prices are now falling
Selling prices are falling. This corroborates the Rightmove data which shows asking prices falling 2.2% in the 7 months since July 2009. Quote from the article: 'Elsewhere in property, Bellway put out a trading statement for the six months to the end of January, which knocked 27.5p off the share price to 733p. The numbers showed that its average selling price had fallen, and the board expects trading conditions during the first half of 2010 "to be subdued relative to historic levels". The falls were compounded by Charles Stanley, which put out a pretty negative view on the housebuilders. Analyst Tom Gidley-Kitchen wrote that there were "significant possibilities of a downturn in prices, and even an economic double dip, without a balancing upside scenario of strong and steady growth".'