Halifax house Prices down by 16.3% in May

Halifax house prices increased by 2.6% in May bringing the year in year rate of decline to -16.3% in the month. The annual rate of change fell from -17.7% in April to -16.3%. This compares to reported falls in year on year prices of -15% and -11% in April and May reported by Nationwide.

Nitesh Patel, housing economist for The Halifax, said:
House sales remain substantially below their long term average and market conditions are expected to remain difficult with housing activity continuing at low levels over the coming months."

The house price to earnings ratio, a key affordability measure, has fallen from a peak of 5.84 in July 2007 to an estimated 4.36 in May 2009. The long-term average is 4.03.

It is always important not to place too much weight on any one month's figures but there are some tentative indications of a possible stabilisation in activity, albeit at a low level as we have seen from the Bank of England latest mortgage approval data and from the price trends reported by Nationwide.

Halifax House Prices May
Bank of England Mortgage Approvals April - Green Shoots?
Nationwide House Prices May fall  by 11.3% year on year.

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