Well, the second dip that UK housing market bears (pessimists, people who believe we are in a bear market amid a downturn), including the writers on this blog, have been warning about is here.
The month of August left the bulls (those who believe we are in a bull market, heading upwards, optimists) with nothing to cling to; both the indicators that had turned positive and stirred optimism turned back negative in August.
The Land Registy index -- the most trusted index of house prices in England and Wales -- said that the average UK house price fell by 0.1% in August. Not much of a fall, but coupled with a fall in mortgage approvals in the same month it is a clear sign that the dead cat has stopped bouncing as far as I'm concerned.The Bank of England revealed that mortgage approvals fell from 52,404 in July, to 52,317 in August. Again, not much of a fall but the BOE itself acknowledged that the current level of mortgage approvals is "well below a level consistent with rising house prices".
To be fair, when prices first started rising after months of falls I said it was an anomaly, a one-off inexplicable rise because of the shortage of data available, so I suppose I should say that this could be a one-off fall in the same vain.
However, when I said that about the rises it was because the other data didn't support house price rises, so now, because the data still indicates a market where prices are falling, and because prices never stopped falling in most of the country, I believe that this fall represents the first of many.
Real estate market is really confusing from couple of quarters. It is in complete fluctuating situation, it is not steady and i think it would take more time to be on steady position.
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