Falling house prices could be that many homes could be in negative equity.
Nationwide building society have releases figures which show that average house prices have fallen by 1.7% in September. There has been a decline for 11 months in a row, and the average house value now stands at £161,797, compared to £164,654 in August, meaning that many homeowners could now be in negative equity.
These figures reflect a drop in consumer confidence and the possibility of rising debt due to the global economic crisis, which is likely to effect the housing market for the months to come.
Nationwide’s chief economist Fionnuala Earley remarked that: “We would need to see a significant shift in consumers’ sentiment before we begin to see any real recovery in activity and subsequently house prices.”