It’s all Over! The Housing Market has bottomed out!
Well, that’s according some reports after new research released from the department for Communities and Local Government (CLG) says housing prices in the U.K have stabilised.
The Royal Institute of Chartered Surveyors (RICS) have recently reported that interest in housing purchases rose this month, and everything is now looking good again…
House Prices Rising
CLG figures revelaed that house prices fell just 3% in April 2009, which has been reflected renewed interest in the buying market in the U.K. There is also good news for first time buyers (FTB’S) as they are now paying 16% less than a year ago to get onto the all-important property ladder. The avergae house price in the U.K now stands at £189,000. Month on month house prices rose 1%, compared to a 0.5% rise for the same period last year. Natiowide and Halifax have also confirmed that housing prices have stabilised, and have also seen a renewed interest in property seekers.
Many commentators are now in agreement that the new figures represent genuine good news for the U.K market, and that this is the moment where many investors will return to the buying arena.
There is a distinct lack of supply in the U.K for new buyers, and this could in turn lead to a return to price increases, though some warn that markets generallt remain cool in the run up to a general election.
U.K Homes For Sale
Northern Ireland was worst hit this year, with a 20% decrease in house prices, whilst Wales lost on average only 10% - a small decrease when considering that house prices rocketed for so many years. A pull-back was inevitable, and such a small drop should be greeted with relief. Scotland was least affected, with a drop of only 8%. House priced in Scotland remain relatively subdued during the last 5 years, with Dundee noted as a particular bargain hot spot, where good quality housing and quality of life remained relatively cheap. Edinburgh, as many who live there know, was something of a standout city, where prices were beyond the pale. While prices in Scotland’s capital city remained fairly robust, many other cities (including Glasgow) collapsed. Glasgow was particularly hard hit - with an oversupply of new builds in the city centre. ‘For Sale’ signs now consume many sites in the city. In England, prices fell also, with an overall drop of 13%.
Some commentators are still unsure this is the housing bottom, sighting the activity and recent figures as still relatively low, compared to a vibrant housing market. many suggest that a bottom will be mid-2010, and with a further fall of around 10% to come this year. Prices in the U.K would probably need to fall by that percent to allow first time buyers into the market and a normal pricing range to develop. U.K housing remains overpriced to many.
U.S Home Sales
If the economy does start to grow, and unemployment eases, then a recovery could well be expected early 2010. Much depends on the housing market in the U.S., which tends to dictate how the U.K market grows. Much concern remains over the Obama administrations’ handling of the U.S.’s employment figures, with a recent poll suggesting that the public perception of the Obama administration starting to falter.
Looking to check recent pricing in your city? Check online: http://www.sell-my-house-quick.com/search