An economist who accurately predicted the last two housing market crashes is now warning that a new downturn has already commenced, with the potential for substantial home value declines.
Fred Harrison, an economist who developed the concept of the 18-year property cycle, has stated that the market is currently in a "freefall." According to his analysis, homeowners could see the value of their properties plummet by as much as £82,000.
Recent market data indicates a downward trend. For example, figures from Nationwide show that average property values have already fallen by more than £5,000 since April. Harrison's warning suggests this decline could be the beginning of a more significant and prolonged market correction.
Harrison's previous predictions include forecasting the dot-com bubble's burst in 2000 and the 2007 global financial crisis, lending weight to his current assessment of the housing market. The article suggests that homeowners might consider strategies to protect themselves from potential value depreciation, though specific advice is not detailed in the provided notes.