New figures from the Halifax have shown the house price recovery has not just stalled but is now in reverse gear. The predictable decision by the Bank of England to keep interest rates at 0.5% is the only relief home owners with mortgages can expect now they face another dip into negative equity and the impending house price crash.
According to the Halifax figures for June 2010, the new average price is Â£166,203 with a 0.6% decrease in price on the month and a 6.3 increase year on year.
This news is rather ominous though when you consider this is usually one of the most buoyant monthsÂ for the housing market which usually commands a sale with an achieved asking price iof not more.
The message this sends out to the property market is clear, the party is over.
Forget the excuses like the world cup or the cold weather, the property market is collapsing because the mechanisms which prop up high prices were removed during the start of the credit crunch nearly three years ago.
Many like myself were surprised when the property market 'recovered' at all, however it's remarkable what 0.5% interest rates and the public funded bailing out of reckless lenders can achieve.
These immoral actions (putting the weight of bad lending onto the tax payer and saver) were still not enough to prevent a three month period of consecutive falls in house prices during peak season and leaves one or two bloggers on housepricecrash.co.uk who have faced continuous criticism and derision having the last laugh.
The aforementioned site has gained much notoriety over the past few years and is read by journalists of some stature as well as politicians and economists from across the spectrum of editorial, political and financial perspectives.
One blogger on housepricecrash.co.uk who calls himself 'Techieman' introduced the well known market term 'Dead Cat Bounce' to the housingÂ debateÂ several years ago and this analogy/prediction summed up the way the property market has reacted just like a deadÂ cat would after falling from a building and hitting the street.
We were facing anÂ economic crisis accompanied by some sharp falls in house prices that, if they had continued with theÂ momentumÂ they wereÂ gaining before measures were put in place like quantitative easing to increase liquidity for lending, would have left us possibly with an average house price less than the current deposit required for a modest house.
Techieman whoever you are, you called it right….how annoying.