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Quick housing market update

Quick housing market update

According to Nationwide, house prices rebounded in August, rising by 1.3% – the biggest monthly increase since 2010. The annual rate of change is still negative, at -0.7%; and of course these figures disguise enormous disparities between different regions (most notably, prices in London are still buoyant, but they’re falling sharply in other regions).

This month’s Nationwide report doesn’t contain a regional breakdown, but there are some interesting other charts. For instance:

Here’s the annual percentage change in house prices in recent years. Strikingly similar to the mortgage lending chart in the previous post
This is the average house price of UK property
However in real terms (in other words adjusted for inflation), house prices are still well below their pre-crisis levels – indeed are significantly lower than their long-term trend
Compared with earnings, here’s how affordable house prices are at the moment

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