Friday, July 29, 2011
House prices up but consumer confidence drops
Posted by David Smith at 08:45 AM
Category: Thoughts and responses

The Nationwide says house prices edged up by 0.2% in July but were down by 0.4% ona year earlier. It describes the market as stable, though at a lower level of activity. Year-on-year price changes have been essentially flat since November 2010.

The number of transactions in the second quarter, 204,000, was the lowest for two years. The market is not really recovering. The Nationwide also notes that home ownership continues to decline, from a high of 70.9% to 67.9% on the latest figures for England and Wales. More here.

The stability of house prices looks odd against plunging consumer confidence. GfK-NOP says its confidence reading, down five points at minus 30, has only been lower twice in the survey's 37-year history, in the early 1990s and mid-2008. It fits with weak housing demand.