What is the fair value level for house prices?

To our minds, the weight of evidence suggests that the fair value level for house prices is currently in the region of £125,000. For context, that figure is some 17% below the Nationwide’s estimate of average house prices in January of £150,500 and 33% below the October 2007 house price peak. What’s more, we think that house prices will ultimately fall 10% - 15%below this fair value level

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