The Nationwide House Price Index out today indicates a fall in prices in November. Although this is a continuing fall as some news alert announced, it is only very small.
The yearly comparison puts prices virtually as they were this time last year, with again a small percentage increase of 0.4%.
The three month on three month rate of change – a smoother measure of the recent price trend – rose from -1.5% to -1.3%. This remains well above the deeply negative rates of -5% to -6% that prevailed during the most severe phase of the downturn in 2008...... There is little evidence to suggest that house price declines are likely to accelerate in the months ahead.
Nationwide have performed an interesting analysis to compare the current fall in prices against those in the early 1990s. Their view is that although the fall started out similar, it has not fallen as much, currently 19% below the 2007 peak as opposed to 31% if it had followed the similar trend.
The general view here is that it is due to low house purchase activity and continue low interested rates, as opposed very high rates in the early 90s.
For more information visit: http://www.nationwide.co.uk/hpi/historical/Nov_2010.pdf
What troubles have you had with getting a mortgage recently? Or have you not had any trouble and are wondering what all the news is about? Let us know .