Just like the in the US, homes in the UK are still seeing year-over-year growth. However, just like in the US, home price growth is slowing down fast, according to the latest data from The Nationwide Building Society
- Y-O-Y: Annual UK house price growth slowed to 7.2% in October, drown from 9.5% in September.
- M-O-M: Prices fell 0.9% month-on-month in October, this was the first monthly decline since July 2021.
Rising Rates. Rising mortgage rates are hurting affordability with home prices at elevated levels. The report notes, “a prospective first-time buyer (FTB) earning the average wage and looking to buy a typical FTB home with a 20% deposit would see their monthly mortgage payment rise from c.34% of take-home pay to c.45%, based on an average mortgage rate of 5.5%.”
- This was a common ratio before the financial crisis in 2008.
The slowing housing market data isn’t putting a damper on equity markets in Europe as the FTSE is currently up 1.4% halfway through the trading day while elsewhere in Europe the DAX is also in the green with a current 1.28% gain.
- Big trading day across China as Hong Kong’s market closed up 5.23% while Shanghai finished the day up 2.26%. Japan’s Nikkei was also in positive territory with a 0.33% gain on the day.
US markets are green across the board with the Nasdaq futures up 1.23%, or 142 points, followed by S&P and dow futures up 1.0% and 0.63%, respectively.