Home Value Decreases Appear To Be Slowing At Last

Most recent statistics released by a leading player in the House Sales UK market illustrate that the reduction in Home values slowed quite noticeably in October. The rate of fall was 0.4%, as compared to 1.3% for the month of September.

The statistics were announced by the Nationwide Building Society, which is one of the leading 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. Actually it’s the ONLY big one to survive the craze for demutualization a decade or so ago. Since then it has navigated a very conservative path through the more recent craze for buying into the derivatives and U.S. Sub Prime Mortgage markets. The society persistently 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 clients, and using those funds to lend to its own younger customers who need finance to Buy Houses.

As a result of this very conservative strategy, the Building Society’s management now finds itself fully 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 also very much attracted by society’s continued mutual status, which makes it very effectively insulated against the vagaries of the global stock markets. All the above makes the Nationwide a player to watch, listen to & respect, as it becomes a yet more dominant player in the House Sales UK market.

This slowdown in the rate of reduction in Home values can only help to attract more Home Buyers back into the market, and so the rate of reduction could be slowed even further over the coming months. Remember that House Buyers aren’t just families looking to Buy Houses to live in. There’s a large and growing number of people and companies who see Houses as a safe home for their excess cash. These people and companies have begun to think this way after seeing several famous banks fail. They’ve realised that big deposits held by private individuals, and all funds held by limited companies are not safeguarded against Bank crashes. Houses, on the other hand, can’t disappear, even if they can lose some of their value over the short to medium terms.