IS THIS LATEST HOUSE PRICE SLUMP A SURPRISE?

 
Ben Southwood
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ANDREW GOODWIN ERNST & YOUNG ITEM CLUB
Given the state of the economy, Nationwide is looking at a very low number of transactions in computing their data, which throws some doubt on the representativeness of their data. The general trend seems to show a general downward drift of roughly one per cent per quarter.

CRAIG ERLAM ALPARI
Though we expected a slight rise, the 0.6 per cent fall wasn't too surprising – if banks are unwilling to lend, due to worries about their exposure to the Eurozone, then housing market activity will be depressed.

HOWARD ARCHER IHS GLOBAL INSIGHT
The Nationwide data reinforce our suspicion that house prices will trend gradually lower over the second half of 2012 in the face of limited activity, low and fragile consumer confidence, muted earnings growth and high unemployment.