Halifax House Price Index was released today, hot on the heels of the Nationwide HPI figures yesterday. Halifax reported house prices to have fallen by -0.4% in May, down further from a fall of -0.1% in April.

This sets the average house price at £167,570 and represents a 6.9% annual growth from May 2009, which is the largest annual rate of change since October 2007.

Although the growth in 2009 was strong, according to RICS this was driven by the low supply of properties and low interest rates.

Commenting, Martin Ellis, housing economist, said:

“The relative recovery in house prices in 2009 was driven by a boost to demand from reduced interest rates combined with a lack of properties for sale. These factors have lost some momentum in recent months”

However yesterday Nationwide reported a rise in house prices by 1.7%! So are the organisation confused, or confusing us? The trouble is in looking and reporting one figure you get a blinkered view, i.e. a rise or fall.

However looking at both Nationwide and Halifax figures since Dec 2009, you can see that in reality the price rises are just oscillating around 0%, i.e. a flat price rise. Maybe a up a bit this month, then down the next.

“The mixed pattern of monthly price rises and falls so far this year is consistent with a slowing market and is in line with our view that house prices will be flat during 2010 as a whole.”

For more information visit:
http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp

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• Nationwide HPI falls -0.5%, reflecting previous Halifax Price drop
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