House prices drop in November
Posted on 13 December 2007 by
House prices in England and Wales have fallen for the fourth consecutive month, according to the Royal Institution of Chartered Surveyors (RICS).
In RICS' November survey of its members, 58% of surveyors reported a fall in prices, compared to just 2% who reported a rise. In October 43% of surveyors had reported a fall compared to 4% who saw a rise, suggesting that the market weakened further last month.
RICS' figures also reveal that surveyors are seeing comparatively little property come onto the market, with more surveyors reporting a fall in new instructions than reporting a rise. However, RICS says that the figure has improved since last month, suggesting a 'loosening' of the supply.
The institution reports that the credit crisis is hitting confidence in the market, with surveyors' price expectations at their most pessimistic since 1998.
"However," said spokesperson Jeremy Leaf, "while underlying economic fundamentals remain sound and the labour market remains strong, large falls in prices remain unlikely.
"Employment would have to fall sharply before enough supply entered the market to create a significant dip."
Government employment statistics released yesterday showed the highest number of people in employment since records began in 1971.
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