2nd stage of house price slump underway?

Profile image for redlight

By redlight | Thursday, July 08, 2010, 21:28

A survey by Halifax has indicated that national property values dropped 0.5% in May and 0.6% in June suggesting that forecasts of a ‘W’-shaped pattern predicted some months ago were not without basis.

Spring and summer usually result in a slight increase in price as buyer demand increases.

The stagnation in the market in 2009 meant that proportionally more properties came on the market in the spring and there was less activity from buyers which combined, resulted in the fall.

Howard Archer, economist at HIS Global Insight said: “It is hard at this stage to be optimistic about house prices in 2011 as the fiscal squeeze will increasingly kick in which will hit people’s pockets and lead to serious job losses in the public sector.”

The coalition government’s abolishment of HIPs has encouraged more homeowners to put their house on the market over the last two months which has only added to the glut and further pushed prices down.

Monitoring activity online by Jeanes Holland Burnell in Wells it would seem that a flurry of sales have been made during the last two weeks so it is not all cause for doom.

A local estate agent reassured that as long as vendors remain realistic about valuations for their property, the market in Wells should survive a 2nd-wave slump should it come about, but acknowledged that the government’s cuts will reduce buyers’ spending power and the market will definitely slow, even if prices don’t fall significantly.



max 4000 characters

Latest Stories in Wells


Local Vouchers

  • The Sensible Eating Plan - Ebook

    Functional Fitness Forever

    Get the nutritional information and eating plan previously given to clients only! Available from pay hip or through the functional fitness forever website, this eating plan can help you feel better!

    Terms: available from http://payhip.com/b/rH9v
    Tweet and FB your purchase for discounts!

    Contact: 01749 608718

    Valid until: Tuesday, September 30 2014

  • £20 Off ghds - Great Summer Exchange!

    Frontlinestyle Hair & Beauty

    Upgrade with our Great Summer Exchange! Trade-in your old electrical hair equipment by any brand, e.g. styler/curling tongs/hairdryer and swap for any new pair of ghds to get £20 off this summer!

    Terms: Offer ends 31st August 2014.

    Contact: 01749600464

    Valid until: Monday, September 01 2014

  • Free child entry to our award winning animal farm!

    Court Farm Country Park


    Terms: For a limited time only, get 1 free child entry to our award winning farm with every two paying adults - have a family day out and save £5.95!
    Subject to availability
    Not to be used in conjunction with any other offer

    Contact: 01934 316835

    Valid until: Sunday, August 31 2014


Local Jobs


Search for...

Min price is bigger than Max price
Min price is bigger than Max price
Min rent is bigger than Max rent