I am surprised people think house prices have already gone as low as they can as personally I think many property has a lot further to fall! But it depends on where you live, the type of house, etc. A family friend owns a buy to let in Manchester city centre which I fear will never recover the price he paid for it. But his main residence is in an area that continues to attract buyer interest. As with many things in life it does you little good to look at averages and house prices as a whole. Having said that my money is on average house prices to bottom before 2009 is over but only just
They have not yet come down enough. I have been monitoring prices closely since February last year as I am looking to buy but not much has been tempting.
No prospects of job increases, we are in a deep recession so something must give.
Now that the "experts" are saying that a recovery is near be prepared for worse.
I would like to think the worst is over, but when the experts are saying a recovery is near it makes me nervous. I think the worst is yet to come!
I've worked in the industry for 4 years, and in the financial sector for over 10 years. I am also a home owner who has remortgaged a few times to extract the best deals out of the market. While I'm not an expert, I do follow this market closely, and until recently even had open access to a full database of mortgages and lenders, as well as market trend analysis reports, just like market analysts. I am of the (fairly confident) opinion that the bottom has not been reached. Be ready for a mild Spring bounce, tailing off until the end of August or September, as long as nothing drastic happens in the market. Then we'll see the Winter blues settle in, as people who have been hearing hopeful recovery stories realise that this time, recovery will be slow, jittery and painful for some. That's when I can see a bathtub bottom. It won't be until next April (2010) that we'll see a push for something looking more like the start of a recovery in property.
I think that prices will continue to slowly fall in 2009 and bottom out with a slow recovery or stabilisation in the second half of 2010 helped by a lot of talking up of the economy due to the election. I don't trust any of the "green shoots" commentators at the moment, and think that it will prove to be a false alarm. Estate agents, conveyancing solicitors, banks and MP's with second homes have too much to gain from increases to be objective about the recovery prospects. I'm particulary fed up with the BBC with talking prices up and their subliminal message that price increases are good news. I think this is the year that it finally sinks in that one persons profit is another person's extra debt to buy the same house. I wouldn't be surprised if we don't start to hear of the need for small increases in interest rates next year which stops any substantial recovery.
I am inclined to agree the bottom of the market has not been reached,but having been in the legal profession for 36 years am aware of the pattern of peaks and troughs.I believe that unless there is a massive rescue to the economy by the government house prices will continue to fall through 2012 and only show noticeable improvement in 2013.There will always be seasonal rises and falls but these will be insignificant in the bigger picture.I would not personally make a property investment now unless it was to be held for the very long term.
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