Fears of a housing market crash have been raised after average house prices fell by more than £6,000 in September, driven to the biggest monthly fall on record amid anxiety about the fragile state of the economy.
The 3.6% monthly decline in house prices – the biggest reported in 27 years by Halifax – was described as an "absolute shocker" by one economist, and knocked share prices in housebuilders and mortgage lenders.
Halifax, part of the state-controlled Lloyds Banking Group, tried to ally fears that prices – now at an average of £162,096 – were poised to nosedive amid impending cuts to public sector jobs.
Martin Ellis, Halifax's housing economist, stressed that while September's 3.6% fall was a record on the basis of monthly comparisons, on a quarterly basis the fall in house prices was 0.9% compared with the second quarter – a significant slowdown on previous quarter-on-quarter falls of between 5% and 6%.
The release of the closely watched Halifax data, which has been a barometer of house prices since it was first compiled in January 1983, came barely 24 hours after the International Monetary Fund had warned that house prices in the UK were too high and vulnerable to a fall.
Halifax admitted the September fall was an "intake of breath" moment, and warned that more volatility was expected because of rising taxes, falling incomes and homeowners testing the appetite for demand by putting their homes on the market.
Howard Archer, chief UK economist at IHS Global Insight, described the house price data as an "absolute shocker", but noted that prices had risen surprising strongly in August and July.
More from source: Housing market crash feared after average house prices take record plunge | Business | The Guardian
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If house prices continue to fall like this then I might buy a house or two next year...
The 3.6% monthly decline in house prices – the biggest reported in 27 years by Halifax – was described as an "absolute shocker" by one economist, and knocked share prices in housebuilders and mortgage lenders.
Halifax, part of the state-controlled Lloyds Banking Group, tried to ally fears that prices – now at an average of £162,096 – were poised to nosedive amid impending cuts to public sector jobs.
Martin Ellis, Halifax's housing economist, stressed that while September's 3.6% fall was a record on the basis of monthly comparisons, on a quarterly basis the fall in house prices was 0.9% compared with the second quarter – a significant slowdown on previous quarter-on-quarter falls of between 5% and 6%.
The release of the closely watched Halifax data, which has been a barometer of house prices since it was first compiled in January 1983, came barely 24 hours after the International Monetary Fund had warned that house prices in the UK were too high and vulnerable to a fall.
Halifax admitted the September fall was an "intake of breath" moment, and warned that more volatility was expected because of rising taxes, falling incomes and homeowners testing the appetite for demand by putting their homes on the market.
Howard Archer, chief UK economist at IHS Global Insight, described the house price data as an "absolute shocker", but noted that prices had risen surprising strongly in August and July.
More from source: Housing market crash feared after average house prices take record plunge | Business | The Guardian
-------
If house prices continue to fall like this then I might buy a house or two next year...
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