House values drop an average £11,000 since October
February 4, 2008
According to recent research the value of properties in the UK have plummeted by an average £11,000 since October. This equates to an average daily fall of £120 a day in house prices, and many experts have stated that things are set to get worse over the coming year. The report was put together by property specialist website Right Move.
The data comes as bad news for all homeowners, but for those that have only recently bought their homes this could quickly result in negative equity, where the homeowner owes more on the property than the property is actually worth.
The average property value in October of last year was £241,642 but this has now fallen to £230,428, which equates to a fall of over £11,000. In the past year house prices have only risen by 3.4%, which is the lowest annual increase for two years according to officials from Right Move. Industry officials also added that asking prices on properties have also fallen, and one two bedroom house in an affluent area, which was up for £375,000 in July, has now fallen in asking price to just £235,000.
There have been similar reductions in asking prices on many properties, with some falling by around 40%. Another house that was up for nearly £300,000 last July has fallen to well under £200,000. Prices on properties are still rising in London and a number of areas, but many other areas have been hard hit, one of the worst ones being the East Midlands. Here, house prices dropped by 6.1% in January.
One official stated: ‘Some properties have had their prices dropped by 10% or more.’ He said that this had brightened the outlook for potential buyers, adding: ‘Enough sellers seem to have dropped their prices to encourage potential buyers to look in larger numbers, suggesting we might see a more active market at this lower price level.’
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Wow, I would definitely take advantage of that 30 day return period of my homes value dropped that much…they have that in the real estate industry right…?