Report Bbc: Nationwide Warns House Prices Will Likely Fall Further in House prices and the economy Posted November 25, 2010 The message seems to be "house prices will fall, but a return to the big falls of 2008 are unlikely." Well, I have to ask why not? Rewind back to 2007, and the message was "house prices will fall, but only by a bit" When the falls get going, there is nothing to stop them getting worse. Everyone seems to be lulled into a sense of security that even if we are in for a soft patch, it won't be as bad as 2008. Why not? In my view it could easily become as bad as 2008 again very quickly. As soon as people see their house prices falling they will dump them, and another round of tightening and undercutting will begin, and it all accelerates down. Bear market pschyology. And, crucially, without the ammo to halt the slide - no more IR cuts possible, mainly, plus the very real prospect of a D-D recession.