Before I make my point, I want to state that I'm of the belief that we are experiencing a bull trap. In my opinion, a gradual decline in house prices is what we all need. Before the crash, prices were ridiculous, and they're only slightly less ridiculous now.
Having said that, I find it extremely disconcerting that the graphs the industry pundits are publishing frequently show false zeros. Even a tiny fluctuation in prices can look shocking if you crop to just the top portion of the graph. This can fool you into thinking that prices have dropped more drastically than they really have, and trigger your buying impulse. Funny, that.
I've had a closer look at the Nationwide's average house prices graph.
I'm not a whiz with Photoshop, but I've done a quick - estimated by eyesight alone - adjustment to the graph to show a true zero on the house price axis. I've attached it below.
It's less shocking than the version published by the Nationwide, but I still see the likelihood of a big trough to come.
I only did this roughly, but if anyone would like to do it properly, or with other graphs, I'd love to see the results.
Compare with original as posted here:
Tiburonsmoke (sitting and waiting...)