House Price Crash Begins

Over recent weeks, I've pointed to the evidence that one result of the Liberal-Tory policies is that a house price crash is inevitable.We Dive at Dawn, Wages and House Prices, Heading For A Crash.

Today's newspapers and TV news suggest that crash has begun. On top of previous surveys from Nationwide, Halifax and others pointing to falling prices, today's RICS data shows their first fall in a year. As previous graphs I've shown demonstrate, the degree of decline looks to be severe. On top of the house price data, other data out today show that Retail Sales have slowed significantly, and other surveys show that Consumer Confidence is falling rapidly with the reason given as concern and uncertainty resulting from the Liberal-Tory economic policies.

The extent to which the media have focussed on the story, and the open blaming of the Liberal-Tory policies in driving down house prices, and already beginning to crater the economy, is probably also another indication of the fact that sections of Big Capital, are applying pressure to slow down the Liberal-Tories spending cuts, and deflationary measures.