It is worth remembering that there are strong economic reasons that support house prices: low interest rates, a strong labour market, increased demographic demand, strict planning regulations leading to a shortage of new houses being built.
Current market conditions represent a great opportunity for cash rich buyers in all market sectors.
The pattern of price movements is mixed for different regions.
House prices were up 1.
6% in Greater London, East Midlands 2.
2%, East Anglia 1.
4%.
But prices were down by 5% in the West Midlands and 4.
7% in Wales.
Bear in mind the bigger picture that prices are have nearly doubled over the last 10 years.
A third of 'owner-occupiers' own their homes outright.
A quarter of properties bought are done so with cash.
It is wise to learn from history and compared the situation now to the last time house prices peaked.
In 1990 inflation was 10%, interest rates where high and increased.
That caused the economy to go into recession.
Recession lead to an increase in unemployment as economic output fell.
The main cause of the fall in house prices in the early 1990s was high unemployment as those who unfortunately lost their jobs could not keep up the mortgage repayments.
Unemployment went from 1.
5 million in 1990 to nearly 3 million in 1993.
Today employment is at a record high with unemployment below 800,000.
As more people have taken jobs since the early 1990s, so the demand for houses has increased.
Consider affordability: today's new mortgage borrower spends - on average - less than a third of their income on monthly mortgage repayments.
That is still below the equivalent amount spent in the early 1990s.
Then interest rates were 10% and peaked at 15%.
Today's interest rates are lower, plus the rate is being reduced.
Today's new borrower typically has a fixed-rate mortgage.
This give protection against a rapid spike in interest rates.
This type of mortgage was essentially unavailable to the 1980's buyer.
The government's target is the build 3 million new homes by 2020.
This is needed because of the increase in new households.
Current levels of new houses being built is well short of the government's target.
During 2007 there was a 20% shortfall.
So for most home owners the economic position is far more positive than the media's concentration on recent house price falls.