Monday, 27 June 2011

A Little-noticed Milestone: This Week, House Prices Will Have Fallen Over 30 Per Cent in Real Terms

TELEGRAPH – BLOGS – ANDREW LILICO: Unless something odd happens, this week is likely to see an interesting but under-announced milestone: falls in house prices, in real terms, from their 2007 peak, exceeding 30 per cent (on the well-known Halifax measure). In cash terms, house prices peaked in August 2007, and fell 22 per cent to March 2009. After picking up a little in the second half of 2009 and early 2010, they went back to falling from mid-2010, and have been broadly flat during 2011.

But because inflation is high, that flat performance in cash terms for housing in 2011 means that, after adjusting for inflation, house prices have been falling apace. In real terms, since January 2010, house prices have fallen a further 12 per cent. » | Andrew Lilico | Monday, June 27, 2011