News emerged today that house prices have seen their biggest annual fall in ten years. It’s obviously important news and a big deal and it reveals a number of things about the state of the housing market and housing policy in general.
First, the fall is driven by a decrease in demand. This is to be expected given that interest rates are currently relatively high. What’s more, those looking to buy are holding off on purchasing right now as they expect house prices to drop even further for a number of factors including the labour market shrinking.
