Halifax data out for October 2008

Month on month house prices are down 2.2%. The Halifax report house prices down 13.7% annually, but they calculate this using this quarter against the quarter a year ago.

The true yearly drop is 14.6% on a seasonally adjusted basis. August 2007 average house price was £199,612 against £168,176 for October 2008. A drop of £31,436.

The last 12 months has seen the biggest falls ever from the Halifax. The previous biggest 12 month fall was in October 1992 of -8.5%

House prices have fallen 15.8% from the peak in August 2007 14 months ago. It took from May 1989 to July 1995 for house price to fall 13.21% that is 74 months and the bottom of the last housing slump.

This housing crash is now worse than the 89-95 housing crash and we have only just got going.

The last time house prices were at this level was October 2005 at £168,031.

Crown prediction is still house prices to continue falling with the Halifax index bottoming at £140,000 in Q4 2009. A fall of 30% or £59,600 from the peak in August 2007. That would be house prices returning to levels last seen in Q4 2003.