House prices will fall in 2007, says expert

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House prices will fall in 2007, says expert

Fri 5th Jan 2007

House prices are set to fall during the coming year due to an increase in the number of properties available for purchase, according to the founder of property website PrimeMove.

Henry Prior told BBC Radio 4's Today programme that record house prices will result in more people selling their homes which in turn will mean there are more options available to buyers so prices will fall.

He spoke in the wake of research undertaken by Halifax that shows house prices fell by one per cent during December last year – the first time this has happened since June.

Mr Prior remarked: "We monitor the total number of properties that are on the market and we're seeing that total supply is at an historic low – an all time low as far as we can calculate. But we are seeing record numbers of new properties coming onto the market."

Overall, property prices rose by 9.9 per cent in 2006 says Halifax and the bank also announced that it believes house prices will increase this year by four per cent.

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