If you’re thinking of buying or selling your house, it’s hard to ignore the question on everyone’s mind: what’s happening with house prices? Will prices fall further, or will they rebound and go back up? Nobody knows for sure, but there are some signs we can look at to get an idea of what’s going on. This article explains why house prices fall and how you can find out what’s happening with real estate in your area.

1. Why house prices fall - and
what you can do about it

2. How house prices are set:
The balance between demand and
supply sets house prices. When
buyers outnumber sellers, prices
will rise; when sellers outnumber
buyers, prices will fall.

3. The long-term trends in property markets
The long-term trends in property -
Over the long-term, UK property
markets tend to be much less
volatile than in the short term.

4. Risks when investing in property
One of the risks when investing in
property is fluctuations in the
housing market. Rental returns are
far less predictable than those on
shares, bonds or bank deposits

5. Things to remember when buying property
Before buying property, remember
to include the following in your
budget: stamp duty (a one-off tax
payable on purchase), estate agent
fees (on average 1.5% of purchase
price) and legal fees
(approximately £500).

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