Property prices will fall say Bovis

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by Kay Murchie

Housebuilder Bovis Homes has warned that average property prices and sales volumes will be lower than anticipated this autumn due to the global credit squeeze which has adversely affected consumer confidence.

In a trading update, the group said average sales price is likely to fall 3% below that achieved last year. Bovis is the first housebuilder to predict a fall in its sales prices and said completions for the year would be marginally below that achieved last year.

Bovis is very honest about market conditions and was the first company to warn about the 2004 slowdown said analysts at Panmure Gordon.

Analysts are expecting more housebuilders to follow suit and are anticipating similar statements during the next few months.

Talking of its future prospects, Bovis said that the mid and longer-term supply and demand dynamic remains very attractive in the housing market. However, sales in the short-term will reflect the latest decline in consumer confidence.