Thursday, 29 May 2008

UK Home Prices Plunge in May

I used to include the commentary that accompanies the monthly figures from Nationwide. However, the Nationwide economist,Fionnuala Earley is starting to come out with absurdly optimistic statements that rival Lawrence Yun at the NAR.

The point is that house prices have experienced a huge run up this decade and are now reverting back to the mean. House prices are now off -6.7% from their peak in October of last year. Those declines have a lot further to go before there is any kind of stabilization in the UK housing market.