Month on month house prices are down 2.2%. The Halifax report house prices down 16.2% annually, but they calculate this using this quarter against the quarter a year ago.
The true yearly drop is 18.9% on a seasonally adjusted basis. House prices peaked in August 2007 at £199,612 against £159,896 for December 2008. A drop of £39,716.
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 19.9% from the peak in August 2007 15 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 are probably half way through now.
The last time house prices were at this level was August 2004.
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.