March 9, 2009
The property peak
Story link: The property peak
The average house price has now settled around somewhere close to £140,000, which for some people, represents a huge loss compared with the capital gains they were sitting on just 12-18 months ago. House prices continue to fall, just like the stability of the futures of people who were depending on their value to retire.
House prices have tumbled a long way since their peak in the autumn of 2007 – by a fifth, in fact.
Much has been made of the fact that they are now roughly back in line with their long-term average, at around £148,000. But that is beside the point – house prices never rise in line with their long-term average: they either grow faster than it or slower, or simply fall – as is now happening.