28% fall from peak to trough for house prices
June 10, 2009
Earlier this month figures were released that showed there would be a fall of 28 percent in house prices from the time at which they peaked in October of 2007 to the time at which the property downturn comes to an end.
The information was released by the Centre for Economics and Business Research (CEBR). Officials from CEBR have said that the downturn will probably comes to an end next year, but that in real terms prices will not start to increase again until 2013.
The report predicted that by the end of this year the average house price will have fallen to around £144,000, but by the end of 2013 the average house price will have climbed again to £170,000.
The CEBR also said that it was possible that house prices would only fall by another 8 percent or so before the market bottomed out. However, even if this is true it was also predicted that over the course of 2010 and 2011 house prices would only regain around 6 percent in value.
One CEBR official said: “Worsening conditions in the labour market and the wider economy seem likely to counter-balance historically low interest rates and slowly improving credit conditions.”
Another said that house prices were “likely to remain in the doldrums for some time as what is likely to be a slow recovery in the real economy translates into weak wage growth and stubbornly high unemployment - factors that will put a fairly heavy lid on house price inflation.”
The data comes despite improvement in the credit markets, rising mortgage approval levels, and increased interest in the housing market from potential buyers.
- Mortgage still being sought by first time buyers A recent report has indicated that despite high house prices and restricted mortgage availability, coupled with higher borrowing costs and the threat of negative equity due to falling house prices, many non-homeowners are still seeking
- Reports that property prices may pick up next year Recently an industry official predicted that house prices would have to continue falling up to an overall 35 percent before starting to recover again. However, in a separate report an estate agency industry group had
- Possible £40,000 fall in house prices by end of 2009 According to recent figures house prices could fall by as much as £40,000 by the end of 2009. The figures indicated that compared to the peak of last October the average house price could fall
- More money wiped off average house price in February Recently released figures from the Halifax have indicated that yet more money was wiped off the average house price in February. Officials claim that the average house price has fallen by yet another £3800 on
- House prices set to continue falling Recent reports have suggested that house prices in the UK are going to continue falling with one industry group predicting that there will be a further 10 percent fall in house prices over the coming
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