Levels of housing activity still look to be too low to support a rise in house prices but that is what the Nationwide has reported, for the second time in three months. It says prices rose by 1.2% in May, reducing the annual rate of fall from 15% to 11.3%. Limited supply may have pushed prices higher, it says, while stressing that it is too early to call the turn.
It is indeed possible that we are seeing a delayed supply response and that when supply does come on to the market prices will lurch down again. The Halifax index has yet to show convincing signs of a slowing pace of decline, let alone increases. Nonetheless, taking all measures together signs of stabilisation are evident in the data. The Nationwide release is here.
Originally published at About David Smith’s EconomicsUK.com and reproduced here with the author’s permission.
One Response to “Nationwide says house prices rose in May”
sage • May 31st, 2009 at 7:52 am
nationwide are a bunch of clowns. this is a useless self serving analysis being put out by them to justify raising premiums.david smith is an unethical moron for wasting this valuable space w/ garbage promos such as this
