The Centre for Economics and Business Research (CEBR) has predicted house price recovery up to 2007 peak prices in 2013, with the market expected to bottom out around 2010 at the level previously predicted by Graham Beale of the Nationwide (25%). This in the face of the Council of Mortgage lenders' recent advice that short-term house price predictions were futile. I am inclined to agree that we don't know enough about the implications of the coming recession to predict what will happen to house prices. Widespread company-closures and job-losses could well have an impact on the property market, and we are not in a position to predict how sharply the economy as a whole will suffer. For now I am going to stick to my wild prediction of last month...
Currently there is a resistance by sellers to accept the drop in house prices and that is no doubt why we have such a huge amount of unsold properties currently on the market with little chance of being sold in the next 6 m0nths - they are basically over-priced. Anyone who has observed the way in which house prices rocketed in the between 1990's and 2000 must accept that propertu prices have been over-inflated by a tremendous amount.
In other news, some US sources are reporting a surprise upturn in the housing market, but there is no reason to think this is anything other than a freak short-term occurrence.
Related posts:
When will the property market recover?
25% house price drop expected
Worse-case scenario for house prices
Sub-prime mortgages to blame?
No comments:
Post a Comment