The latest Scottish House Price Monitor (from Lloyds TSB Scotland) has shown that Scottish house prices (based on an average domestic property in Scotland) have fallen by 4% in the three months to 31st October 2008. This has been the largest fall in prices since the House Price Monitor started sixteen years ago.
Annually, Scottish house prices have risen by 4.9%, however this figure is substantially down compared to the previous publication of the House Price Monitor which noted a rise of 9.3%.
House purchase transactions (within the Scottish House Price Monitor) have fallen by 43% compared to the same period last year.
Professor Donald MacRae, chief economist, Lloyds TSB Scotland, said: "The Scottish economy is entering a significant slowdown with rising claimant unemployment and falling consumer confidence. The number of housing transactions has declined markedly since one year ago and the market is adjusting to lower prices and sales.
"Although the number of mortgage products has declined, the cost of borrowing has reduced for many mortgage holders with the latest fall in interest rates in early November. So far, the Scottish housing market is showing sensible adjustment rather than a precipitous collapse."
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