Halifax Reports Annual UK House Prices are Stable
THE TAKEAWAY: UK house prices fall 0.6% in July, down 0.6% on a 3-month over a year basis -> Halifax says house prices have remained stable due to steady supply and demand -> Sterling corrects some of Friday’s gains
UK house prices dropped 0.6% in July, following two months of rising prices, according to Halifax’s price index. July’s home prices were slightly lower than the expectations for a 0.5% drop, and the 3 months period that ended with July saw a 0.6% drop in house prices when compared to the same 3-month period in 2011, which was as expected.
The average price paid for a home in July was 161,094 pounds, according to Halifax. Home sales totaled 466,000 during the first half of 2012, this is 10% higher than first half of 2011, and 2% higher than the second half of 2011.
Halifax explained that house prices have been stable over the past year due to the static nature of supply and demand conditions during the period. Halifax Housing Economist Martin Ellis added, “looking forward, we
expect little change in prices over the remainder of 2012 so long as the economic climate in the UK does not worsen substantially.”
Last week, the Nationwide Building Society said house prices slid 0.7% in July, and reported housing prices to have fallen 2.6% annually. They attributed the lower housing prices to the disappointing economy.
GBPUSD did not significantly react to the housing prices release, but continued to slowly fall towards 1.5600. The pair has steadily reversed part of Friday’s gains in today’s correction. Cable has been trading in a near-sideways channel over the past month, and most recently found support near 1.5500. 1.5717 has provided resistance for the near two-month trend.
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