Thursday, June 5, 2008
The same old story
For most homeowners, house price crashes are still synonymous with the early nineties. Halifax is keen to point out amid its latest dire house price figures that the economic conditions in the 1990s and today are very different. Interest rates are lower today, at 5 per cent. In 1989, they were as high as 15 per cent for a short period, and did not fall to around today's levels until 1994. Unlike the 1990s, unemployment today is still relatively low. Halifax says these factors "support housing valuations".