House prices fall again in August, says Nationwide

2 September 2010
http://www.bbc.co.uk/news/business-11161166

Since February 2009, it is the first time that house prices have declined two months in a row. In July the fall was of 0.5% and August 0.9%. Prices are being expected to fall between 3% and 5% during the second half of 2010 and another 5% next year, according to Howard Archer, chief economist at HIS Global Insight. At the moment the average house price is just over £166,500. Martin Gahbauer, the chief economist at Nationwide made clear that the actual development is just a correction, because last year house prices had advance ahead of the recovery of the general economy.

For home owners this is not a positive development but if you compare it with other European countries, where house prices are falling dramatically, this is not bad at all. An average house price of £166,500 if you convert the currency to euro it is almost 200.000. Now it is a good time to buy a house , because there is a large selection to choose from. As a home owner I would not just sell right at the moment. I would wait for the economy to stabilize first.