The first of the House Price Indices (HPI) is now out from Nationwide and headline figures report that overall things are on the up.
- Monthly change is at 0.5% which last months figures being amended so that there was actually a 0.7% increase.
- The 3 month on 3 month figure, which is more stable shows an increase of 0.6%.
- Overall yearly change is 0.1% – not as strong but positive.
So when looking graph of the HPI we can see that in 2011 we do indeed have some good upwards movement.
Yet Nationwide do not see this as a sign of any strong up turn in prices, which uncertainty in the overall economy and interest rates still keeping prices stable. The average house price now stands at £164,751.
While demand is likely to remain fairly soft, a rapid increase in the supply of properties also appears unlikely. Low interest rates and a stabilisation in labour market conditions have prevented a rise in forced selling, and the subdued market outlook is deterring many sellers from entering the market.
Overall there is nothing to indicate that the housing market is going to buck the overall economic trend, which is far to say is still sluggish.
A recent report by the LLoyds Group (aka Halifax) also indicated that a static housing market inline with the overall economy was likely when it analysed the Bank Of England (BoE) stats showing:
- 47% fall in home sales since 2007
- North-South housing divide widening
- Modest recovery in 2010
For more information on any particular area visit: Nationwide HPI