Economists warn housing is still overvalued after five months of gains send prices back to 2008

House prices have bounced back to last year's level, after rising for five successive months, Nationwide reported today, raising hopes that the property crash is over. The cost of the average property rose by 0.9% last month, to £161,816 - the same price as in September 2008 - according to the UK's biggest building society; but Nationwide cautioned that the market still faced "considerable headwinds". Economists have been surprised at how rapidly house prices have begun to rise again, after dropping by 13% since late 2007. Compared to the long-drawn-out downturn of the early 1990s, the adjustment over the past year has felt like a short, sharp shock.

Source : The Guardian page 41 - 3.10.09
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