House prices fall at fastest rate for 17 years
The slump in Britain's house prices accelerated in May to the fastest level since the Nationwide began records 17 years ago.
The price of an average house fell 2.5 per cent in the month, making the seventh consecutive monthly fall in prices, the longest downward slope since the housing recession of 1992.
In the year, 4.4 per cent has been wiped off the value of homes, the biggest annual fall since December 1992 when the price fall reached 6.3 per cent.
Really sharp drop that surprised even the big bear.
We are now 6.9% lower from the top in October.
See the press release.
--- Update 5th June 2008
Halifax confirm the drop.
House prices: Market sliding faster than in the 1990s recession.
Thursday, May 29, 2008
Another month, another drop
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4 comments:
On the bright side:
- Good news for those who are looking to buying a home,
- not too bad news (could be worse, thing about the rise of 20%/year that occured!!!) for owners.
@vonric
All that is assuming that it's not gonna get worse.
To put thing in context, that's the worst drop MoM ever recorded. And the Yoy is unlike like to raise or stabilize. The mortgage approval who are forward indicator suggest that the correction is looking more and more like a ongoing full blown crash like in the USA.
In any case, properties in and around London are "expensive by design":
Tight regulations to prevent new developments, low density (houses) housing, the Green Belt, and poor transportation.
These factors limit the supply very much and make it unattractive to live far from London if you work there.
So yes, the bubble has burst and prices will go down probably until at least 2009. But the south east will still be comparatively very expensive.
@spicyhotpot
I agree with you, the fact that price in NI are now as high as the south east show that they are gonna correct more.
I would not go the all way concerning the shortage in London, if you look at how many flats are build in Canary Wharf ...
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