Yes The Nationwide Figures Are 'good News' However

[Converted Lurker]

and in 2003 they were hardly affordable for the priced out. With 70% of (riskier) mortgage product stripped out prices will begin to plummet, but this correction, (down to 2004 prices), could take minimum 3-4 years IMHO.

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

"House prices fell for the fifth consecutive month in March. The price of a typical house fell by 0.6% during the month, bringing the annual rate of house price growth down to 1.1% - its lowest rate since March 1996. A clear change in sentiment since the late summer has led to the sharp slowing in house price growth, even in the less volatile 3-month on 3-month series. Prices on this measure are now 1.5% lower than three months ago. The price of a typical house in the UK is now £179,110, only £2,027 more than this time last year. However, prices are still 11% higher than two years ago and 47% higher than five years ago - the equivalent of a price rise of more than £30 per day for the last five years.

http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0

[Harry Sacks]

47% higher than five years ago

Around here they're not (Devon). I was actually house hunting in 2002/2003. Prices have been static since then.

[stuckmojo]

and in 2003 they were hardly affordable for the priced out. With 70% of (riskier) mortgage product stripped out prices will begin to plummet, but this correction, (down to 2004 prices), could take minimum 3-4 years IMHO.

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

"House prices fell for the fifth consecutive month in March. The price of a typical house fell by 0.6% during the month, bringing the annual rate of house price growth down to 1.1% - its lowest rate since March 1996. A clear change in sentiment since the late summer has led to the sharp slowing in house price growth, even in the less volatile 3-month on 3-month series. Prices on this measure are now 1.5% lower than three months ago. The price of a typical house in the UK is now £179,110, only £2,027 more than this time last year. However, prices are still 11% higher than two years ago and 47% higher than five years ago - the equivalent of a price rise of more than £30 per day for the last five years.

http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0

...no spin there then.

so, IF someone bought 5 years ago, with a good mortgage, NOT mewing, now his perceived house value is 47% higher now, but what difference does it make?

I think that Fionnualalalalalalalalalaal should also remind those who were daft enough to buy in the last 5 years, AND mew, paying particular attention to those who bought last year, she'll find that her argument is total boll0cks

[Fancypants]

according to "three sugars please" Declan this morning, this 47% figure was the one that really leapt out at him. Did he buy 5 years ago I wondered, or was that figure infused with the delicate aroma of frying bacon as a cynical honeytrap set by Nationwide?

[Leonard Hatred]

I'm so dizzy, Earley is spinning; like a whirlpool she never ends.

[Crashman Begins]

I reckon 2 years max.

Its only taken 5 or so months for sentiment to turn.

Another 5 months for the resets and mortgage crunch and we'll be well on the way

[Converted Lurker]

prices are falling, however, we've been here before - 2005, but things are really different this time. But even a severe correction, 20% over 2 years, only takes us back to 2005 prices. Way way to early to begin celebrations IMHO, even when the figures go YoY neg. Shouldn't lose sight of the fact that this whole housing market has been completely ruined for a priced out generation and the effects will be felt for decades..

[silver surfer]

prices are falling, however, we've been here before - 2005, but things are really different this time. But even a severe correction, 20% over 2 years, only takes us back to 2005 prices. Way way to early to begin celebrations IMHO, even when the figures go YoY neg. Shouldn't lose sight of the fact that this whole housing market has been completely ruined for a priced out generation and the effects will be felt for decades..

You're right, this has got years to run yet, and with plenty of bull traps along the way.

[the_duke_of_hazzard]

If you factor in inflation then it's not so bad.

prices are falling, however, we've been here before - 2005, but things are really different this time. But even a severe correction, 20% over 2 years, only takes us back to 2005 prices. Way way to early to begin celebrations IMHO, even when the figures go YoY neg. Shouldn't lose sight of the fact that this whole housing market has been completely ruined for a priced out generation and the effects will be felt for decades..

[babesagainstmachines]

On FiveLive this morning, they were talking about the Nationwide figures.

I was in the shower at the time so didn't hear it properly, but the presenter waded in with the real argument that falling house prices are only bad for people who are downsizing or selling up. For everyone else it's a good thing. Of course, we all knew that, but for it to be aired on one of the national propaganda channels means only one thing to me... the Government know they can't do anything practical about it and are spinning it our way. They might finally be on our side !