Property: House prices drop 0.2% in April

4th May 2011

The news website reports that prices continued their roller coaster route last month with a 0.2% fall following a 0.5% rise in March, according to figures released by the Nationwide Building Society.

However the news is not good for first-time buyers as appare3nt drop is the result of "seasonal adjustment", a twiddling of the figures to make up for the fact that more properties sell in April compared to, say, December, therefore distorting prices.

In reality, house prices rose in April to an average of £165,609 from £164,751 in March, and the three-month on three-month measure showed a "modest" rise of 0.6%.

On The Telegraph Robert Gardner, Nationwide's chief economist,is reported as saying:  "It is not unusual to see a pattern of modest monthly increases and decreases when the market is fairly static, as has been the case since last summer."

On the Guardian comment boards, readers were unimpressed.

sharkfinn says: "Nothing to see here folks. Move one. Still only a trickle. Not yet a flood. House sales are nearing the bottom, while house prices do not.

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