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House prices drop causing a decrease in mortgage approvals

31/03/2008

House prices dropped for the sixth time during March period, these were statistics formed by the housing market. Average prices decreased by 0.2 percent, with the annual rate of escalation slipping to 0.4 percent, the lowest level since March 2006. Due to current market conditions, it has only caused mortgage approvals to drop.

A recent survey identified an 8 per cent increase in sales agreed over the month after a 20 per cent increase over February. The average time to put up for sale a property remained unaffected.

Richard Donnell, Hometrack's Director of Research commented: "Some bounce-back in market activity was inevitable after what has been a prolonged period of weak market activity.

"Uncertainty in the financial markets, affordability pressures and weak buyer confidence, are all likely to suppress levels of market activity in the months ahead with pricing levels remaining under pressure."

The housing market still exists but many households don't need to move. It has resulted in major declines in parts of the market activity over the last six months.


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