If the recent rates of house price falls are sustained, it is plausible that the 35% peak-to-trough decline that we expect will have been delivered by autumn 2009. The sheer speed of adjustment is causing alarm. However, we suspect that the great speed is a good thing. While a period of falling house prices will inevitably be painful, we believe that the quicker house prices return to fair value, the less damage the housing market correction will do to the wider economy.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services