Thursday, 23 December 2010
UK house prices - Cardiff property market - flatlining since 2004
The property price chart for Cardiff is quite strange.
The data suggests that prices have flatlining since 2005. During the first half of the decade, Cardiff enjoyed a robust housing bubble. After 2005, the bubble seems to have petered out.
The red line represents the underlying trend in prices. The trend tracks the series quite closely for the first five years, then prices hop around a flat trend.
These prices are not adjusted for inflation. Therefore, the data would imply that in real terms housing prices in the Welsh capital has been falling.
If only this were true of more cities in the UK.
(The data source is Acadametrics, which uses Land Registry prices).