House prices 'have' fallen

Posted: 03 Sep 2010 09:41:28 GMT

House prices have dropped for the second month in a row, research has indicated.

According to the Nationwide the average cost of a dwelling fell by 0.9 per cent in August.

Chief economist at the establishment Martin Gahbauer said it is the first time since February 2009 the price of an abode has decreased for two consecutive months.

"Unless house prices bounce back strongly in September, the three-month rate of change will turn negative next month," he added.

Mr Gahbauer explained buyers now have more bargaining power with sellers because of the unwinding of the supply-demand imbalance that caused prices to increase so much in 2009.

He observed more people have also put their properties on the market, which gives those wanting to purchase a greater selection to choose from.

Earlier this week, Nick Marr, director of the Little House Company urged those looking to buy a house to consider the location, as this can help to override negative features of a property.
 

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