Home prices started to reduce finally

Fall in House Price

The slowdown in the economy has finally taken a duty on the demand of the house price in the residential real estate sector for the quarter ended June 2013 reduced all over the country. As per the data given by National Housing Bank, compared with the previous quarter, 22 out of 26 cities which is covered by NHB Residex is facing the fall in housing prices this quarter ended June 2013.

The Residex as prepared by the NHB is to track the movement of the residential property price on a quarterly basis. As per the index not only the tier I cities, but also the tier II cities are experiencing a fall in the price during the period between April and June 2013.

Ludhiana experiencing the largest revision of price falling which is 6 percent followed with Indore and Vijayawada that are 5.6 and 5.4 percent respectively. The prices in Delhi and Mumbai are reduced by 1.5 and 0.5 percent respectively. The four cities Dehradun, Nagpur, Surat and Lucknow saw an increase in the price, where Nagpur has witnessed the high rise of 3.1 percent.

The similarity in fall in the residential prices in a recent occurrence, the prices in 9 out of 20 cities has reduced when seen on year to year basis. Indore and Ludhiana faced the largest fall of 9.4 and 8.2 percent respectively in a year. Jaipur also experienced the biggest upward and downward movements of 41 percent over the last one year. Delhi and Mumbai saw increase in the price 15.7 and 12.2 percent in the year June 2013 compared to June 2012.

Experts say that, decrease in the price may not be the real fact of the ongoing slowdown.  One of the chairman states that, there is no such reduce in the prices and some cases they have not even fallen but still there is a decrease in the sales which is going down.

The situations differ from city to city. One of the advisor says Mumbai is in a bad condition than Delhi and it has been experiencing a decrease in transaction over the last two years.

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