House Prices Falling Year on Year
The latest Hometrack survey confirms that house prices are now falling year on year. The average house is now worth £173,100 - £1,500 less that a year ago.Industry analysts say that this 0.9% fall is 'symbolic' as this is the firsthouse survey to show an annual house price fall since the start of the credit crisis.
Homes are now also tking a record length of time to sell, with the average property stayinh on the market for 9.1 weeks before selling.
Houses are selling for 7% less that their asking prices.
This latest survey increases the likelihood of the recurrence of negative equity. Analysis of Bank of England and mortgage lenders' data suggests that 350,000 homeowners will face negative equity if prices fall by 10% this year - which is being widely forecast by property experts.
This would equate to 3 in every 100 mortgage holders being hit by negative equity.
Kelvin Davidson, the property economist at Capital Economics, said: "This data all adds to the growing gloom.
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