Gloomy outlook for house prices

House prices rose by 0.1% this month, reflecting the lack of buyer confidence in the face of current turmoil in the eurozone.

Prices remained unchanged in the 3 months to September according to the BBC.

Nationide’s chief economist believes prices will remain stable for the rest of 2011, despite the gloomy global outlook,

Sluggish demand for potential buyers has resulted in a rise in the number of properties on the market – a particularly grave issue in the North East if England.

In the past year, house prices in the region have fallen 7.3%,. Times are particularly difficult in Hartlepool, where prices dropped by 15.7% over the same period.

A representative from Dowen estate agents in Hartlepool does believe houses will sell – if vendors are prepared to drop their prices.

Several homes on the Hartlepool housing market were the result of repossessions, with some two-bedroom homes worth £20,000.

However, for home sellers dropping the price is a difficult option, as those who bought at the peak of the market may have borrowed more than the property is now worth. 

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