Monday, May 09, 2011
Halifax shows 1.4% fall in house prices
Posted by David Smith at 01:00 PM
Category: Thoughts and responses

It was the Halifax which led the way with sharp monthly falls in house prices three years ago, so April's 1.4% drop will make some people sit up and take notice. Note that many media outlets are reporting this as a 1.2% fall, but that is the drop over the latest three months. On this basis prices were 3.7% lower than a year earlier.

Most evidence we have suggests a gradual softening of prices rather than an big fall, so this many be an outlier. Indeed the Halifax is examining its methodology. Martin Ellis, its housing economist, interprets what's happening as modest decline: "The latest figures show that the underlying trend in house prices continues to be one of modest decline. Prices in the three months to April were 1.2% lower than in the previous three months. There was a 1.4% fall in prices in April following no change in March." More here.