Today, the Nationwide printed its first house price number for the year. It was a bad one. Year-on-year, property prices are down 1.1 percent. Compared to December, prices are down 0.5 percent. It was the sixth consecutive month of declining prices.
A trend has now emerged; banks appear to be less willing to lend into the property market. As the credit has stopped flowing, prices have started to slip. In short, we seem to have entered a second credit crunch.