House sales have fallen so why are prices still high?

Tuesday, 26 July 2011

House sales have fallen so why are prices still high?

Why are house prices apparently so resistant to the normal laws of supply and demand?

It is one of life's great mysteries.

Houses are still expensive, by anyone's reckoning.

The supply of buyers has been restricted by banks and building societies, who continue to ration their mortgage funds.

The economy is flat, with unemployment high and people's real incomes being driven down by a combination of inflation and low wage rises.

And the level of home sales is roughly half what it was before the banking crisis. So why have prices not collapsed?

Click here to read more

Source: BBC Business News http://www.bbc.co.uk/news/business-14020457

	Latest News
Property sales hit annual high, says HMRC Wednesday, 4 January 2012 Property sales hit annual high, says HMRC Home sales hit their highest monthly level of the year so far in November, figures from HM Revenue and Customs (HMRC) have shown.           Read more... UK house prices surprisingly resilient, Nationwide says Thursday, 1 December 2011 UK house prices surprisingly resilient, Nationwide says UK house prices have remained "surprisingly resilient" in recent months, with values rising again in November, the Nationwide has said.     Read more... House prices edging lower, Land Registry figures show Thursday, 2 June 2011 House prices edging lower, Land Registry figures show House prices in England and Wales have drifted slightly lower in the past few months, according to the Land Registry. Its latest survey of all completed sales shows the average price rose by 0.8% in April to £163,083.     Read more...