Housing market recovery not until 2023?
Andrew Clare, a professor of asset management at Cass Business School in London, used futures contracts based on the Halifax house price index to figure out his dire prediction. He calculated that in 2010 the average will be 40 percent lower than the peak of 199,600 pounds in August last year – about 120,000 pounds.
That’s particularly bad news for those who bought a house last summer, and Clare predicts that negative equity will be “a big feature of our economic landscape for years to come.”
The Halifax said last week house prices dropped at their fastest rate in September since records were first kept 25 years ago, with the average average price down 13.3 percent.