For a seventh month in a row the UK housing market has grown, according to the Nationwide index.
With mortgage deals starting to become available, job security returning to the employment market and interest rates still at 0.5%, people are beginning to gain confidence in the economy again.
Nobody wants to put a negative slant on this news, but more a realistic approach. Why has this happened?
We have a thought, but let us know what you think...
House builders have struggled due to the economic crisis and this has resulted in many going into administration, thus less companies are building properties.
Home owners have witnessed their asset (their house) drop in value - year on year house prices are down by 2.7%. People don't want to sell if they don't have to and seem determined to hold on.
With more first time buyers, property developers and people looking to 'get a good deal' in the market they are hunting for houses but there are few available.
The issue is supply vs. demand. Supply is down at the moment but demand has increased. This means people will have to pay more money as they compete against more people for fewer properties.
If this changes - more house builders start building houses again or the prices creep up and more people are willing to sell - we can see house prices sharply declining.
What do you think?
Sliding Mirror Wardrobes business analyst team
Showing posts with label house prices. Show all posts
Showing posts with label house prices. Show all posts
Tuesday, 8 December 2009
Tuesday, 3 November 2009
Housing Market Update
According to a Nationwide survey, UK house prices in October were on a year on year high for the first time in 19 months.
The average house cost £162,038. As many of you will be home owners this will be good news to see your asset increase in value.
The survey details this recent house price rise is likely to be due to the lack of properties on the market.
The View From Improve Your House
Improve Your House believes we are most likely in the 'eye of the storm' in the sense that if demand increases or supply decreases we will be back to stage one. Typically, over the course of the last 2 recessions the housing market has increased slightly after the fall and then dipped again.
We expect house prices to start recovering in the next 1 1/2 - 2 years.
Increasing Your House Value
If you have spare cash because of low interest rates on your mortgage then put it to good use. A conservatory, kitchen, bathroom, new bedroom design or attic conversion will all add value to your property.
You don't have to wait for your asset to increase in value.
Your View
Do you agree with our opinion?
Will the housing market take over a year to bounce back?
What have you used your spare money on? Would you recommend it to others?
The average house cost £162,038. As many of you will be home owners this will be good news to see your asset increase in value.
The survey details this recent house price rise is likely to be due to the lack of properties on the market.
The View From Improve Your House
Improve Your House believes we are most likely in the 'eye of the storm' in the sense that if demand increases or supply decreases we will be back to stage one. Typically, over the course of the last 2 recessions the housing market has increased slightly after the fall and then dipped again.
We expect house prices to start recovering in the next 1 1/2 - 2 years.
Increasing Your House Value
If you have spare cash because of low interest rates on your mortgage then put it to good use. A conservatory, kitchen, bathroom, new bedroom design or attic conversion will all add value to your property.
You don't have to wait for your asset to increase in value.
Your View
Do you agree with our opinion?
Will the housing market take over a year to bounce back?
What have you used your spare money on? Would you recommend it to others?
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