Research Residential

Housing prices did not crash during 2020 says Lightstone

Residential

Housing prices did not crash during 2020 according to Lightstone’s Residential Property Index for January 2021.

National house price inflation was 3.05% at the end of December 2020 and the low, high and luxury value bands ended the year at approximately 2.5% while the mid value segment ended the year at 4.9%.

The luxury segment that has been trending closer to -0.5% at the end of 2019, is not growing close to 2.5% per annum and the mid value segment has also added some speed from 3.6% to 4.9% while the high value segment has decreased from 10.2% to 2.5%.

It is difficult to point to the exact reason for the increase in the luxury segment and the decrease of the low value segment, but this could be due to the luxury segment being far more dependent on interest rates which have decreased significantly while the low value segment is more dependent on economic growth, which has decreased significantly.