Is the House Price Crash over?

Is the House Price Crash over?

The Land Registry has released their statistics for June which show that house prices have risen again. Halifax and Nationwide figures paint a similar picture, with prices having increased for the fourth month running.

So can we assume that the property market is now recovering?

Well, the first thing we need to realise is that there is really no such thing as “the property market”.

If we look at the Land Registry figures in a bit more detail, we see that average prices across England and Wales have increased by 0.8% on a year ago. However there are big regional differences, with values in Greater London up by 6.9%, but prices in the North East down by 3.8%.

Looking at the numbers in further detail, we see that even within London there are big differences. Wandsworth is up by a staggering 11.3% whilst Newham is down by 0.3%!

In the North East, Middlesbrough is down by 10.3% whereas adjoining Stockton-on-Tees is “only” down by 2.2%.

So not only are there regional differences, but local differences based on local economies, employment and social factors.

During a period of sustained house price growth most of these quirks level themselves out, of course. The “ripple” effect is often used to explain this, although a better illustration is a series of “splashes” in more affluent and buoyant areas, with a mini-ripple effect around these.

However, it does look like the “crash” is now behind us. Which means that you can expect to see the value of your property rising.

When?

Well, it depends on where you live, but it might be quite soon.

For full details of all house price statistics see  http://tinyurl.com/ofmhguc

By Richard Watters

 


Related posts:

How Much Is My House Worth? (part 2)
House Prices up 6.9% according to Halifax – but can you believe them?
Are We In A House Price Bubble?

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