Friday, May 29, 2009
Nationwide says house prices rose in May
Posted by David Smith at 09:00 AM
Category: Thoughts and responses

Levels of housing activity still look to be too low to support a rise in house prices but that is what the Nationwide has reported, for the second time in three months. It says prices rose by 1.2% in May, reducing the annual rate of fall from 15% to 11.3%. Limited supply may have pushed prices higher, it says, while stressing that it is too early to call the turn.

It is indeed possible that we are seeing a delayed supply response and that when supply does come on to the market prices will lurch down again. The Halifax index has yet to show convincing signs of a slowing pace of decline, let alone increases. Nonetheless, taking all measures together signs of stabilisation are evident in the data. The Nationwide release is here.