MSE News: Nationwide: house price growth slowing

Former_MSE_Natasha

This is the discussion thread for the following MSE News Story:

"House prices rose by 0.4% in October, according to the Nationwide house price index ..."

Read the full story:
Nationwide: house price growth slowing

The two threads have been merged to prevent duplication. Thanks to Spiv for the original post.

Spiv_2

UK house prices were higher year-on-year in October - the first annual rise for 19 months, the Nationwide has said.
Property prices were 2% higher in October than in the same month the previous year, with the average home costing £162,038.
But the pace of monthly price rises has eased - going up by 0.4% - and the building society said that values could plateau in the autumn months.
This could be due to more sellers returning to the market, it said.
Supply
The recent rises in house prices have been driven in part by the lack of properties on the market, despite more people looking to buy.

http://news.bbc.co.uk/1/hi/business/8332861.stm

http://www.nationwide.co.uk/hpi/

purch

Gosh :eek:....

inspector_monkfish

Rise was less than expectations though

inspector_monkfish

07:00 30Oct09 UK Nationwide: House Price Rise Moderates In Oct

LONDON--U.K. house prices rose less than expected on a monthly basis in October, but still posted their first increase in annual terms for 19 months, the Nationwide Building Society said Friday.

The price of a typical home rose 0.4% on a seasonally-adjusted basis in
October to GBP162,038 following a 0.9% increase in September and 1.4% gain in each of the two months before that.

But although October's rise was the weakest of the last six consecutive
month-on-month increases, it left prices 2.0% higher than in October last year, the first annual increase since March 2008.

Economists were expecting the Nationwide house price index to rise 0.7% on the month and 1.9% on the year in October, according to a Dow Jones Newswires survey of economists last week.

"A moderation in the rate of house price inflation was to be expected, as the very strong monthly increases seen over the summer months were unlikely to be sustainable over the long run," Martin Gahbauer, Nationwide's chief economist, said in a note.

Although house prices have risen 4.6% over the first 10 months of this year,
they remain 13.1% below their October 2007 peak, he said.

House prices have been squeezed higher in recent months by a combination of pent-up demand and a shortage of property for sale on the market. Low interest rates have also helped support the market.

Gahbauer said the moderation in the monthly increase seen in October may be due to a more "natural" level of stock becoming available for sale.

The three-month on three-month rate of change of house prices, which is
generally a smoother indicator of the near-term trend, dropped back to 3.4% in October from 3.8% the previous month, Nationwide said.

Gahbauer said official figures showing U.K. gross domestic product contracted 0.4% on a quarterly basis between July and September were a double-edged sword for the housing market because they suggested demand could remain weak but mortgage rates may also remain lower for longer.

Web site: www.nationwide.co.uk

ruggedtoast

I welcome these NW rises - as each one seems to precipitate a new tranche of lower priced property.

amcluesent

With banker's bonuses now cascading in, London prices are way up again. Anyone who's out the market has missed this boat!

julieq

ruggedtoast wrote: »

I welcome these NW rises - as each one seems to precipitate a new tranche of lower priced property.

That's the spirit, never say die!

the_ash_and_the_oak

amcluesent wrote: »

With banker's bonuses now cascading in, London prices are way up again. Anyone who's out the market has missed this boat!

Presumably anyone who wants to move or sell will have to sell to somebody who is out of the market though? (esp if selling a flat)

Really2

inspector_monkfish wrote: »

Rise was less than expectations though

Well for most of this year the rise as been more than forecast every month. makes a change for an under forecast to come in.
But one things for sure there has never been a correct prediction this year.;)

poppy10_2

Prices now only 13% below their 2007 peak.