After another exciting day viewing property it's becoming apparent that asking prices have dropped around 15% in the last 6 weeks or so and, in the areas we are looking at, pretty much back to 2001 levels.
A few of the houses we've seen have actually sold now and I suspect the price achieved is probably less than the advertised reduced price. The agents tell me that sales are picking up which is probably true but only for houses that have very realistic prices.
It'll be interesting to see the Land Registry information for these sold houses to see the actual price they got.
In the face of a worsening economc situation I can't any reason for prices to increase any time soon. If you're buying now it's a 50/50 chance as to whether you'll have paid too much.
I'd say it's a cast iron certainty that interest rates will rise soon which will depress prices still further.
A useful web site I've just found is www.mouseprice.com