Mouseprice.com Gets the Grand Prize for Stating the Obvious on UK House Prices

I have just read an article and felt I must put pen to paper to award it with the grand prize for stating the obvious.

The article in first-rung now surrounded a report by mouseprice.com stating that UK house prices may yet be affected by unemployment.

Firstly it said that unemployment will be the economic indicator that takes longest to turn around. That is not the bone of contention, because though it is obvious to me that businesses have wound themselves into a ball, with their knees under their chin to protect themselves from the recession, and it will take them quite a while before they feel confident enough to come back out to normal, let along consider expanding to the point where new staff become necessary. This is not obvious to everyone.

The bone of contention is the fact that is said unemployment could yet affect house prices. The fact is that unemployment has and is already affecting house prices. Transactions are still at record lows, and unemployment is at least in part to blame for that. Does everyone not know that it is only the fact that supply is at all time lows (and of the UK properties for sale most being unrealistically priced) that has halted the freefall of house prices.

So of course unemployment could still have a further impact on house prices, and it almost certainly will be one of the factors driving prices down if supply increases.