Tuesday, Jan 29, 2008
First time Land Reg goes negative since 2005
Firstrung: House prices fall by 0.4% as sales volumes crash by 21% - year on year - Land Registry
The December data shows a monthly price change of -0.4 per cent and an annual increase of 6.7 per cent. This month's average house price is £184,469. This month's data provides evidence of a downward trend in house prices. Although the annual growth rate remains positive, this month's price fall is a clear indication of a weakening market. This month is the first time since the minor slowdown in 2005 that average prices for England and Wales have experienced negative monthly change. This month's 0.6 per cent rise in London prices is greater than the average for the country as a whole.
Posted by converted lurker @ 11:51 AM (502 views) Add Comment
5 Comments
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1. confused76 said...
Great post CL!
but the performance of London is somewhat muted... there are far better performing regions like the North East
so the Times bricks cheeseleaders will not be able to say... but "Lndn is dffrnt"... maybe they eat croissants up the North too!
2. converted lurker said...
Haha! Croissants are considered a fukicn delicacy up 'ere mate. Volume is the key IMHO, that volume will reach 2004 levels very quickly, then you could argue WE are in 'crash mode'
3. Landedgentry said...
They used the word 'crash'.
Buy To Losers.... be afraid..... be very afraid.
4. converted lurker said...
did "they" who?
5. Fed Up said...
No surprise. As prices fall, there are fewer sellers. In a rising market, one would expect owner-occupiers to be keen to trade up before prices go beyond their reach (well they already are). In a falling market, people who may otherwise have considered trading up are waiting for prices to bottom out, which could well take a few years.
What will bring prices down are buy-to-letters who have overstretched themselves and residential mortgagees, who find that while BoE rate cuts may *slightly* lower their payments, the benefit will be offset by rising inflation, hence they will be no better off financially. Expect more people to jump ship. Once the downward trend is fully established, 'gazundering' will set in.