It always amazes me how journalists equate house price inflation with good news about the economy. Weren't they paying attention, when half our banking system almost crashed last year? Can they recall the reason why Banks like NRK, RBS and HBOS began to wobble?
From today's Telegraph....
A surge in new buyer inquiries, and rises in mortgage approvals have signalled that conditions have bottomed out.
The most startling trend though has been house prices. Nationwide has reported house price rises in five of the past six months, and is now expecting prices overall in 2009 to rise in the region of 0-5pc.
Rival Halifax has reported fewer rises – two out of the last four months – but is expected by economists to say this week that house prices rose again in August.
So undeniably the picture is looking rosier for the housing market, and house prices are likely to continue to stabilise for the rest of this year and into 2010.
But the prices we have seen over the past six months do not necessarily signal the beginning of a smooth or strong recovery, and risks remain which could threaten to derail recovery in the market where the recession began.