UK Housing Market Update Are high rental yields supporting house prices? One explanation for why house prices have remained fairly well supported over the past year or two is that rental yields look attractive compared to the alternatives. Yet the track record of such... 7th December 2011 · 1 min read
US Housing Market Data Response CoreLogic House Prices (Oct.) After having stabilised during the summer, in the three months to October prices on the CoreLogic index fell at an annualised rate of 7.5%. This is clearly disappointing when the domestic economy... 6th December 2011 · 1 min read
UK Data Response Halifax House Prices (Nov.) This month’s fall in the Halifax house price index was hardly a surprise given other recent, downbeat economic news. And with the labour market weakening rapidly and the economy on the brink of... 6th December 2011 · 1 min read
UK Housing Market Chart Pack Bleak economic outlook to weigh down on activity Buyer demand improved on a number of measures this month. However, with the chance of a new recession in the UK mounting by the day, we do not expect activity levels to improve significantly next year... 5th December 2011 · 1 min read
US Housing Market Data Response Case-Shiller House Prices (Q3) House prices were still falling in the third quarter and we don’t think that they’ve stabilised in this quarter either. Even when prices do reach their trough, which could be next year, a continued... 29th November 2011 · 1 min read
UK Data Response Nationwide House Prices (Nov.) & Mortgage Lending (Oct.) The Nationwide house price index remains surprisingly resilient in the face of falling confidence and weak mortgage demand. But with the labour market now deteriorating rapidly, the balance of risks... 29th November 2011 · 1 min read
US Housing Market Data Response New Home Sales (Oct.) The 1.3% m/m rise in new home sales in October was not especially encouraging given that it came at the expense of a 3.3% downward revision to the previous month’s numbers. More generally, new home... 28th November 2011 · 1 min read
UK Housing Market Data Response Land Registry Repeat Sales Index (Oct.) Today’s data from the Land Registry show that house prices in London fell for the second consecutive month. While those falls could yet be reversed, the drop in London prices seems consistent with the... 28th November 2011 · 1 min read
Asia Economics Focus Is emerging Asia experiencing a property price bubble? Although Asia as a whole is not experiencing a property price bubble, we believe that prices in Hong Kong and Taipei are now in bubble territory. There is a growing risk of a sharp correction in these... 25th November 2011 · 1 min read
UK Housing Market Focus Why housing equity amplifies, not smoothes, the house price cycle For a time at least, rising house prices can be a virtuous circle, as equity gains provide the support for further house price growth. But if house prices fall, equity is destroyed while debt remains... 24th November 2011 · 1 min read
UK Housing Market Data Response BBA Mortgage Lending (Oct.) October’s rise in mortgage approvals reversed a large part of last month’s fall. But with the impact of the substantial deterioration in the labour market yet to have fed through fully to housing... 23rd November 2011 · 1 min read
US Housing Market Data Response Existing Home Sales (Oct.) The modest rise in existing home sales in October may reflect the recent improvements in economic activity and the labour market. But a sustained and significant recovery in home sales is just not on... 21st November 2011 · 1 min read
UK Housing Market Update Who will protect borrowers against lower house prices? The proposal to protect lenders against the risk of fresh falls in house prices should help to boost the supply of low-deposit mortgages next year. But it is far from clear that the overall supply of... 21st November 2011 · 1 min read
UK Housing Market Update How significant are City jobs for London's housing market? Popular perception dictates that City jobs are a crucial driver of London’s housing market. Yet there have been at least two previous occasions when significant City redundancies did not trigger house... 18th November 2011 · 1 min read
US Housing Market Data Response Mortgage Delinquencies (Q3) The further fall in the share of households behind on their mortgage in the third quarter is another piece of good news for the housing market. But the delinquency rate remains high and the large... 17th November 2011 · 1 min read
UK Housing Market Update Can high income multiples prevent a further adjustment in house prices? By allowing buyers to bridge the substantial gap between house prices and earnings, the recovery in average income multiples on mortgage lending towards their pre-recession highs has almost certainly... 16th November 2011 · 1 min read
