Halifax posted a surprise rise in house prices during January.
- Figures suggested house prices in January rose 1.9% in January reversing the 1.5% fall in December.
- This comes on the back of data showing an increase in mortgage approvals and activity in the housing market.
- Combined with record low levels of interest rates, Halifax have said that buying a house is becoming increasingly attractive to first time buyers.
- Whilst the rise in house prices will be a welcome boost to confidence and may encourage more to consider buying, it may prove to be just a statistical aberration. Traditionally, month by month house prices can be volatile. In the last period of falling house prices (1989-1993), there were months of price rises amongst the larger deterioration in average house prices. See historical house prices in UK
- A better guide can be gained from looking at a 3 month trend in house prices which show a continued deterioration. The year on year fall of house prices is 17%.
- Nationwide data showed falls in house prices in January.
- House prices in the US have been falling for 3 years, though there is a greater problem of excess supply in the US
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