Desirable home price increases are hiding the true state of the market

Yolande Barnes-2

When the distressed sales start average house prices will fall

According to the Nationwide Building Society, the seasonally adjusted price of UK homes rose by 2.0% in August following a 1.8% rise in July. This is the highest monthly rise in over 16 years but follows dramatic falls. According to Nationwide, the average house price of £222,915 in April reduced rapidly over lockdown, to £216,403 in June.

As a result, said the Nationwide, annual house price growth accelerated to 3.7% in the year to the end of August 2020, from 1.5% in the previous month and reversed the losses recorded in May and June. The average UK house price is now at a new, all-time, high. So, this index at least seems to be indicating that recovery in the housing market has been a very short, sharp V shape.

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