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House prices plummet at a faster pace than in the 1990s

January 16, 2009 by admin  
Filed under News, News-Mortgages

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Many people that are in their thirties and over will still clearly remember the dark days of the 1990s recession and house prices crash, where many people were left in negative equity after property prices plunged. Many are seeing the same patterns for again now, with the global credit crunch leading to plunging property prices and the year finishing with a recession where many businesses are going into administration.
Some recent reports have now claimed that the pace at which house prices are plummeting now is faster than that seen in the 1990s house price crash. House prices are already said to have fallen by over 15 percent compared to their peak in the summer of 2007, and many industry experts expect them to continue plummeting over the coming year, with some reports claiming that they could fall by as much as 35 percent overall before stabilising.

One leading economist stated: ‘Ongoing very tight credit conditions, still relatively stretched housing affordability on a number of measures, faster rising unemployment, muted income growth and widespread expectations that house prices form a powerful set of negative factors weighing down on the housing market.’

He went on to state: ‘Consequently, house prices seem set to fall significantly further over the coming months. IHS Global Insight forecasts house prices to fall by a further 15% on the Halifax measure in 2009 after a likely decline of some 18% in 2008.’

Tags: Lloyds Banking Group, house price fall, faster pace, Economic history, Real estate economics, economics

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  1. Prices of UK Homes Still Falling says:
    May 25, 2009 at 8:52 am

    [...] the prices of homes in the UK are falling overall, this is not true for specific areas of the nation. There are some areas that are experience a rise [...]

  2. Which Age Group Has Been Most Affected by the Recession? says:
    August 6, 2009 at 10:50 am

    [...] fall in house prices has left many wondering what will happen in the future. The decreased prices and the tighter lending restrictions means that there are fewer buyers and [...]



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