Wednesday, 6 May 2009
They report house prices down 1.7% or £2,604 for the month or down 17.7% annually, but they calculate this using this quarter against the quarter a year ago.
The true yearly drop is actually the same this month a drop of 17.7% on a seasonally adjusted basis. House prices peaked in August 2007 at £199,612 against £154,716 for April 2009. A drop of £44,896 or a fall of 22.5%.
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 22.5% from the peak in August 2007 20 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 almost twice the scale of the 89-95 housing crash and we are probably just over half way through the duration now.
The last time house prices were at this level was April 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.
Posted by CROWN at 09:43