The May house price data is just out from the Halifax. As expected, the price decline is dramatic. The Halifax press release claims that seasonally adjusted prices are down 2.4 percent this month, while on an annual basis, prices are down 3.8 percent.
However, I found it difficult to reconcile these numbers with previous data. To see why, here are all the numbers from their press release.
All Houses, All Buyers Index (1983=100)
Index (seasonally adjusted) 595.9
Monthly Change -2.4 percent
Annual Change -3.8 percent
Standardised Average House Price (seasonally adjusted) £184,111
Last month, the average price in April was £189,027, while last May, the price was £196,720. I calculate the monthly price fall to be 2.6 percent, while the annual fall is 6.4 percent.
Perhaps, the Halifax have readjusted earlier data, more maybe I made a mistake. As I said, I can't seem to reconcile the headline numbers with the ones in the Halifax data set. Strange, don't you think. Any explanations.
According to the Halifax, prices peaked in August, when the average prices was £199,600. Since then, prices are down 7.7 percent.