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House prices drop 0.3% in November

House prices fell by 0.3% in November but rose 0.4% on last year, the Nationwide House Price Index shows.

The average house price now stands at £163,398 compared to £164,381 in October.

The three month on three month rate of change rose slightly from a drop 1.5% to a drop of 1.3%.

The figures compare to a 0.7% drop in October despite a 1.4% annual rise.

Martin Gahbauer, chief economist at Nationwide, says: “There is little evidence to suggest that house price declines are likely to accelerate in the months ahead.  Much of the weakness in property values since the Spring has been driven by a return of sellers to the market, following unusually low levels of property for sale in 2009 and early 2010. 

“There is little to indicate that these sellers need to achieve a sale urgently for financial or economic reasons, which means that the downward pressure on house prices is only modest. 

“In addition, there are early signs that the flow of new property onto the market may be slowing down again as potential sellers observe the recent weakness in prices and decide against marketing their properties at the current juncture.  Similar seller behaviour was observed in late 2008 and early 2009, eventually leading to a decline in the amount of property on the market.”

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