We’re in a period where house prices
are clearly adjusting to a new level,
and buyers and sellers are struggling
to find out what that new level is.
The market will determine it,
not us or the government.
Once we’ve reached that level,
prices should normalise.
But that does not mean
back to levels seen early last year
that were clearly excessive.
— Mervyn King, governor of the Bank of England, quoted in The Guardian.
