Property Price Reductions Seem To Be Slowing At Last
Most recent figures produced by a primary player in the House Sales UK market confirm that the decrease in Home values slowed reasonably noticeably in October. The rate of fall was 0.4%, as opposed to 1.3% for the month of September.
The figures were published by the Nationwide Building Society, which is one of the primary players in the House Sales UK market. The Nationwide is one of the very few of the old mutual Building Societies to have succeeded in maintaining its mutual society standing. In reality it’s the ONLY big one to survive the craze for demutualization a decade or so ago. Since then it has steered a very conservative course through the more recent craze for buying into the derivatives and U.S. Sub Prime Mortgage markets. The society steadfastly stuck to its core values, and stuck to the old fashioned, and at the time very unfashionable business model, of raising money by taking deposits from its cash rich customers, and using those funds to lend to its own younger customers who need funding to Buy Houses.
As a consequence of this quite conservative policy, the Building Society’s management now finds itself completely vindicated for not following the herd instinct of the other big financial institutions. It finds itself in an almost embarrassingly popular position with depositors, because they in turn recognise the fact that the society’s cautious policies have been vindicated, and they’re additionally very much attracted by society’s continued mutual status, which makes it very effectively insulated against the vagaries of the world’s stock markets. All the aforesaid makes the Nationwide a player to watch, listen to & respect, as it becomes a yet stronger player in the House Sales UK market.
This slowdown in the rate of drop in Home prices can only help to attract more Home Buyers back into the market, and so the rate of drop could be slowed even further over the coming months. Bear in mind that House Buyers aren’t just families looking to Buy Houses to live in. There’s a large and growing number of families and companies who see Properties as a secure home for their excess money. These people and companies have begun to think this way after seeing several famous banks fail. They’ve realised that hefty deposits owned by private individuals, and all funds owned by limited companies are not guaranteed against Bank crashes. Properties, on the other hand, can’t disappear, even if they can lose part of their value over the short to medium terms.
Posted on: Monday, December 1, 2008 at 4:53 pm 
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