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House Prices Rise for Second Month in a Row

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April 3, 2024
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House Prices Rise for Second Month in a Row
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After a surprising fall in house prices last month, economists have indicated that it was merely a temporary setback and expect prices to continue rising throughout the year.

Despite a 0.2% decline in March, home values had previously risen in both January and February, showing an overall positive trend. House prices across the UK are currently 1.6% higher than they were a year ago, representing the strongest year-on-year growth since December 2022.

According to Nationwide, the average price of a house in the UK is now £261,142, with economists predicting that prices will end the year significantly higher than they started. Although March saw a decline, economists believe it to be a “blip” and expect prices to resume their upward trajectory.

Factors contributing to the fluctuation in house prices include changes in mortgage rates and the demand-supply dynamics in the housing market. While mortgage rates have seen fluctuations, they remain relatively low compared to previous peaks, prompting activity in the housing market.

However, regional variations persist, with prices in the north continuing to rise while the south experiences declines. The north-south divide in the housing market is becoming more pronounced, with prices in the south struggling compared to the north.

Overall, economists believe that the housing market will continue to see growth, with activity expected to gain momentum over the rest of the year. Factors such as interest rates and regional dynamics will heavily influence the pace and direction of this growth. Despite temporary setbacks, the general trend suggests a positive outlook for the housing market.

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House Prices Rise for Second Month in a Row

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