Nationwide Building Society House Price Index September 2023

[Martin@AS Financial]

Key points:

- House prices unchanged over the month, but remain down 5.3% year on year(c.£14,500)

- All regions recorded annual house price falls in Q3

- South West was the weakest performing region, with prices down 6.3% year-on-year


Of particular interest is the graph Nationwide have put together to show the increase of 2 & 5 year swaps as this is what determines the price of fixed rate mortgages.



Full report here:

https://www.nationwidehousepriceinde...e8-ntssg-pus57

[northernladuk]

I'm surprised no falls this month. It's mayhem in our area. Within 1/2 a mile of me you were lucky to see a single house for sale and that went in 24 hours. Looking now there are 310 and most of those rightmove is showing the prize has been reduced since it went up.

Maybe this area is different. Mostly BTL's so landlords are getting out due to the interest rises but prices must be tumbling round here.

[JustKeepSwimming]

Nevertheless, with Bank Rate not expected to decline significantly in the years ahead, borrowing costs are unlikely to return to the historic lows seen in the aftermath of the pandemic. Instead, it appears more likely that a combination of solid income growth together with modestly lower house prices and mortgage rates will gradually improve affordability over time, with housing market activity remaining fairly subdued in the interim.

Think this might be a bit of copium. If there isn't solid income growth the prices crumble.

Don't know about y'all, but this year I have not heard anyone talk about their decent pay increases...

[woody1]

Nevertheless, with Bank Rate not expected to decline significantly in the years ahead, borrowing costs are unlikely to return to the historic lows seen during the 13 years following the 2008 financial crisis.

FTFT.