Wednesday, December 05, 2007
Three in a row from the Halifax - and weak services
Posted by David Smith at 10:30 AM
Category: Thoughts and responses

The Halifax recorded a 1.1% drop in house prices last month, confirming that November was a very weak month for the market and that the credit crisis is biting hard. It was its third consecutive monthly drop, the first since 1995, and makes the Halifax easily the gloomiest of the main house-price measures. It shows a 2.4% fall over the latest three months compared with a 1.5% rise for the Nationwide. Taking both together, November was bad on all measures and prices are clearly softening. We'll head down over the winter to zero annual house-price inflation.

Taken together with the service-sector purchasing managers' index, which was at its weakest since 2003, there is mounting pressure on the Bank to cut rates tomorrow.