Market Update - December 2009

The house price index is based on month-on-month (m/m) figures, comparing the December price index against the previous month of November. It will also provide an overview of the performance during 2009 against 2008, with year-on-year (y/y) figures.

December saw another increase in house prices against November with a 0.4% rise (m/m). House prices rose by 5.9% in 2009 against 2008 (y/y) with the average home now worth £162,103, higher than £153,048 which was the average price recorded in December 2008. The Nationwide also predicted that there will be little change in house prices during 2010.

According to the Halifax house prices have risen by 1% in December 2009 against the previous month. Figures show a rise of 9.4% since April 2009 and overall an increase of 1.1% in 2009 against 2008 (y/y).

Results throughout this year have shown that the market is heading in the right direction. The increase of house prices in 2009 against 2008 show signs of improving seller confidence. However, during 2010 it is still unclear if, or when, the market will fully recover with concerns over the rate of interest rising later in the year and future levels of unemployment are still uncertain.

Source: The Nationwide, Halifax