Will the house price keep falling in 2011?
Asked on Jan 7 2011,
House Prices in Swindon |
This will only be truly known when we start 2012. Please remember that all forecasts are full the full year. 2010 saw a good gain fro the first 7 months however lost that gain over the last 6 months finishing flat. The speculation for 2011 is one of two things. House prices will remain flat as they did in 2010, or a drop of around 5% year on year. Reasons for this stagnation are due to the forth-coming austerity packages being implemented by the government and the speculation of job cuts throughout the UK. The potential for large volumes of repossessions are also on the cards given that interest rates were slashed two years ago. Inter bank lending rates differ from the Bank of England base rate (hence why mortgage products are still being offered at 5.46%+ with some lenders and not 0.5%). All of the banks that borrowed are due at the start of this year re negotiate their loans which may see rates on mortgages increase. Overall a lot of the property market hinges on the ability to buy. A lot of pent up buying tension is currently in the market however without the support of lenders offering affordable products for finance, people may want to buy but won't have the ability to.
From the 'coal face' of a very busy Estate Agents in Leamington Spa we are seeing a huge surge of activity both on the valuations front with stock coming to the market and with active buyers with finance secured registering their details looking for their first or next home.
As per my opening statement we will only ever know the health of the property market for 2011 in Jan 2012, however early signs are positive.
Answered on Jan 8 2011,
Whilst no one can predict this with any real certainty, it seems that most expert predictions are that prices will remain fairly flat like 2010, with small peaks and troughs.
Answered on Jan 9 2011,
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