New figures on house prices have shown double digit falls in Greenwich borough for the second time in two months.
That was despite a monthly increase. The average annual fall totalled £50,000 of homes sold bringing the average down to £469,557.
It should be noted that the figures are often “noisy” due to how many new builds are being sold – and usually at a premium above and beyond local prices. Exceptionally expensive sales can also skew figures.
While mortgage rates have slightly dipped from recent highs they are still far above levels since emergency low rates were introduced in 2008, and now more akin to long term averages. Cheap and low credit helped sustain a housing boom.
UK gilts are up again today so expectations are interest rates will remain high for some time to come, adding to downwards pressure.
With average house prices compared to average wages still at extremely high levels and now the absence of historically low interest rates, prices could return to something more akin to historic norms.