Can you hear it? The gentle pssssst sound. What is it? It's the slow hissing sound as the massive property bubble of the noughties deflates. As we can see from the Nationwide's graph average real house prices have been falling consistently since 2007. This process has been slowed and controlled by a massive monetary stimulus from the Bank of England by maintaining ludicrously low interest rates. Where will it end? Difficult to say...The problem with property bubbles and busts are they are all contingent on finance. With Greece and Europe braced on the edge of a precipice and more restrictive banking regulation imminent then banks aren't going to release their purse strings any time soon. All I see is the psssst sound continuing unless the Euro breaks up and than we will be treated to an almighty farting noise. How apt!