UK house prices continue to crash

[Fredo]

Nationwide data out today confirms the UK house price crash is unstoppable, data shows prices have plummeted for an 11th consecutive month, dropping by 1.7% in September!

We are now just shy of 13% year on year falls, what does this mean... over the last year the average property has lost more than £20,000, and thats if you are lucky. Nationwide have stated that the rate of fall will stay the same for some time, to quote "pace of house price falls had stabilised", don't be fooled by their use of the word stable, they just mean that downward slope in the graph next to this writing will be a straight line down for some time. At this rate, we will be at 25% falls this time next year... more than likely much much more.

This can both be good news and bad news.

 

[bacardi]

I hate to be the bearer of bad news but I dont think home prices in the UK or any other part of the western world will bottom out for at least another 18 months and if the meltdown continues it can be another two more years after that.

The general rule of thumb is that in a bear market a home loses about one half of the gains made during the boom. So if a house started at 100,000 dollars before the boom and goes to lets say 200,000 dollars then in the next bear market it should go to about 150,000 dollars. Mind you these are rough estimates and and depending how bad the economy is and how high unemployement is so like I said this is just a guideline!

 

[temi]

Quite agree with your analysis bacardi, house prices were grossly over value in the first place.