Half way point reached in house price falls, says Rics

Posted: 05 Jan 2009 11:10:46 GMT

            Property News - Half way point reached in house price falls, says Rics

House prices have passed the halfway mark in their fall from their 2007 peaks, it has been suggested by the Royal Institution of Chartered Surveyors (Rics) in a recent report.

The Rics report suggests house prices will make peak-to-trough dives of 25 per cent before once again beginning their ascent.

Considering they have been widely reported to have dropped 15 per cent already, this forecast leaves room for a further ten per cent drop in value in 2009 alone.

"For homeowners - who tend to base prices changes against 'what they believed they could have put their home on the market for' in 2007 - it will feel more like a 30 per cent fall once asking prices are taken into account," read a Hometrack report, in an attempt to explain the negative view likely to be taken by homeowners.

Such news will do little to boost the confidence of homeowners hoping to sell a property, as with falling prices the chance of negative equity will put off most buyers, making it difficult to sell a home.

Those homeowners intent on selling quickly, however, may benefit from selling a property online, which could lead to more buyers seeing the property and could therefore lead to a higher asking price.

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