Monday, 2 March 2009

Bank of England mortgage approvals February 2009

New data out for January 2009 here.

The usual commentary really.

Mortgage approvals for house purchase were 31,000 for January 2009 compared to 70,000 in January 2008 and 119,000 in January 2007.

These are now bumping along a range around 30,000 and have been since June and must now signify the bottom of the approvals for home purchase.

A healthy market tends to have approvals in the range 80,000 - 100,000 averaged over the year, so we are currently around a third of the transactions.

As the housing market continues to fall, house prices will continue to become more affordable. I still stand by my prediction for the market to bottom in Q4 2009 although my £140,000 bottom (Halifax data) is looking like it might be challenged.


Oldrightie said...

With the printing presses melting house prices will fall to a few quid a throw under this shower of economic dimwits.

AntiCitizenOne said...

Your challenged bottom is worth 140,000 pounds?

It made me laugh!