Retail spending down again as house prices plummet at record speed

If you’re starting to think the economy couldn’t get any worse I have some bad news for you, it is getting worse every day. For the second month in a row, retail spending is down and house prices across the country dropped at a rate greater than at any other time in the last 30 years.

The Royal Institute of Chartered Surveyors (RICS) has warned of further drops in house prices claiming the shortage of houses on the market is slowing down the drop in house prices. If the economy problems cause people to sell their homes out of necessity, much larger drops would be probable. A reduction of 10% in house prices by the end of the year is not unlikely.

Will a cut in interest rates help lesser then impact of this so called global credit crunch? Most economists believe the Bank of England will cut rates next month. I guess we can only sit tight and wait and see.

Reports: The Guardian, The Independent, Reuters