Peak prices for houses far off

HOUSE prices will not return to the&nbsp; high point they reached in the autumn of 2007 for at least another five years, according to Ernst &amp; Young&rsquo;s Item Club. <br /><br />Hetal Mehta, Item&rsquo;s senior economic adviser, said the recent rise in property values is a &ldquo;false dawn&rdquo; that will not last beyond the spring.<br /><br />Item predicts that house prices will drop in the first half of next year, then stagnate for two more years. <br /><br />The market will only pick up in 2011 and it will take until at least 2014 for prices to return to their 2007 high, Item says.