Monday, January 19, 2009
-1.9% MoM, -7.3% YoY
We forecast last month that prices were within 10% of the bottom of the market, so this month's substantial fall is consistent with the market bottoming out in the latter part of 2009. This is given further credence by a chronic lack of housing supply. The speed with which prices have declined has been worrying, but it does mean we are potentially reaching the bottom sooner. 2009 could be the year of the property deal. The market has plumbed the depths, with agents reporting sales being achieved at a discount of around 25% from peak. The reduction in the number of properties coming to market appears to be aligning supply and demand which will help create a floor for prices.