Halifax December 2010 MoM -1.3% QoQ -0.9% YoY -1.6%

setmefree2

http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp

Prices in the final three months of 2010 were 0.9% lower than in the previous quarter. This rate of decline is significantly less than the quarterly falls of 5-6% during the second half of 2008. House prices fell by 1.3% between November and December.

"Looking forward, we expect limited movement in house prices during 2011 but with the risks on the downside. Interest rates are likely to remain very low for some time. This will continue to support a favourable affordability position for those entering the market and limit financial pressure on existing homeowners to sell. Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers. Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward pressure on demand

setmefree2

Other interesting bits:-

Some modest variations in house price performance across the country, however, are likely. The regional picture is likely to be affected by the impact of public spending reductions

Typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in mid 2007 to 29% in the last quarter of 2010. This key measure of affordability is at a better level than the long-term average over the past 25 years (37%) and is an important factor supporting housing demand

the_flying_pig

not an amazing stat but still :beer:

sarkin1

Ya cheaper housing, come on money savers

Really2

Good to see the halifax back with it's smooth data.

Do you know they work out month on month data by measuring the difference between the hight of teeth on a saw.

torontoboy45

'rate of decline significantly less than the quarterly falls of 2nd half of 2008'.

that's a relief...

DervProf

So, Nationwide said 2010 say the average home increased by a small amount, Halifax say that the average price fell by a bit more.

Taking inflation into account, I'd say that the average price of a home fell by about 4% last year.

I'd say that's good news. Further good news for potential FTBers, as the banks have continued to prevent them from taking on a mortgage. This gives the first time buyer more time to save a larger deposit, so when they finally do take on their first home, they will need to borrow less due to the larger deposit and lower property price. :beer:

This also is is a nice gentle dose of cold turkey for those who came to rely on ever increasing property prices and easy credit. :beer:

DervProf

torontoboy45 wrote: »

'rate of decline significantly less than the quarterly falls of 2nd half of 2008'.

that's a relief...

That's what thought. They have had to dig really deep to find a crumb of comfort.

Really2

DervProf wrote: »

Taking inflation into account, I'd say that the average price of a home fell by about 4% last year.

I'd say that's good news. Further good news for potential FTBers, as the banks have continued to prevent them from taking on a mortgage. This gives the first time buyer more time to save a larger deposit, so when they finally do take on their first home, they will need to borrow less due to the larger deposit and lower property price.

Two problems with that

1) unless they got pay rises above inflation (or one at all) their wages fell by the same amount meaning they can save less.
2) With IR where they are saving rates are also behind inflation meaning their money is worth less.

Stagnant YoY, 3% inflation 0.5% base rate and no wage increase is not a thing to cheer about if you are a FTB IMHO.

It could be worse, but only if house prices were beating inflation, in general owning is getting harder not easier.

Graham_Devon

Really2 wrote: »

Do you know they work out month on month data by measuring the difference between the hight of teeth on a saw.

You never told us that when it was rising....and never told us that when you thought it was going to stagnate?

Was good enough then?

RenovationMan

Timberrrrrr!!!!