Have house prices reached the bottom yet?
There are a few sources of prices but the Land Registry is the only one that bases them on actual paid prices. The data from them is a bit slower than the Halifax and Nationwide which base their prices on valuers estimates of property which you’d think would differ from actual prices and might have some slant on them.
In January 2009 the Land Registry said average prices in Lancashire were £121,000. In December 2007 they peaked at £137,000. That’s nearly 12% down. An overall average might hide that only cheaper houses are being sold, so really a comparison of say semi-detached would be more useful.
In August 2007 sales peaked at 2871. Since then they’ve come down to 697 in the last figures which are November 2008. A massive drop and one that must hurt estate agents, furniture removers and solicitors.
The national picture is worse than Lancashire with a decrease around 15% although the average price is £156,000. So did Lancashire not reach as frothy a peak or is it lagging? In the Times it said the North West wouldn’t recover till around 2016, later than most places. Assume that meant recover to previous peaks.
The decline has continued in every month since the peak although a small shallowing of the curve has occurred lately. Spring is coming and interest rates are very low. The government is encouraging banks to lend. Banks only want to lend to low risk customers. Job losses are being regularly announced. Is this the bottom? Would you take the plunge? The froth has come off the top but it isn’t clear that it’s the bottom.
We’ve bought 2 houses and in both the value didn’t go up much for 5 years but then increased sharply before dropping off again. Like now.