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20 Nov 07 - Rate Cut Hopes After Prices Dip
A property group is predicting interest rates will be cut
in February as new figures show house prices edged lower
during the last month.
The website Rightmove found values dipped by 0.7% as the
early onset of the winter sales slump forced homeowners
to drop their asking prices. The fall in the four weeks
to November 10 saw average prices decrease by £1,656
to £239,986, with the current volatility meaning average
values have effectively stagnated since July.
Rightmove said it is expecting further drops during December
and the early part of next year, before a more stable financial
environment leads to minor price gains later in 2008.
It also believes a price crash remains unlikely
as long as the economy avoids a recession, as the market
will be supported due to demand outstripping supply.
London continues to buck the national trend, as prices in
the capital rose by 2.3%, but the West Midlands saw the
biggest falls of 2.4%, followed by the South East at 2%
and Yorkshire and Humberside at 1.9%.
Source: Rightmove
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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