House prices next year will barely shift, Halifax has predicted, in one of those statements that make you wonder why they bothered.
Its forecast is that house prices could move up or down by 2%, but it says an uncertain economic climate makes the outlook, well, uncertain.
Halifax housing economist Martin Ellis said: “The housing market has proved highly resilient in recent months despite the weak economic recovery and the significant deterioration in the outlook for both the UK and global economies.
“House sales and the supply of properties on the market for sale have remained very stable since late 2010. These steady market conditions have helped to stabilise house prices and sales. As a result, the average price is currently little changed from that at the end of last year.
“This resilience in the face of very challenging economic conditions provides encouragement regarding the prospects for next year. Overall, we expect continuing broad stability in house prices nationally during 2012.
“Prices are again likely to end the year at levels close to where they begin, with the market continuing to lack any real direction.
“There is currently considerable uncertainty regarding the prospects for the UK economy. The path of the economy during 2012 will, to a large extent, depend on how events in the Eurozone unfold.
“In addition, the extent to which households choose to reduce their debts will also affect growth over the medium term.
“As a result, the outlook for both the economy and house prices is particularly uncertain.”
Nationwide, Halifax's competitor in the housing survey stakes, has not issued an annual forecast for the last couple of years.
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Comments
Anonymous Coward - Please do not feel sorry for EAs.
Most of us have adjusted our cost base and lived with this since 2007, if still in business now most unlikely to not be this time next year, so we are fine and making good profits. Some left wing riots consider profit evil, but it is what makes this country work, not benefits.
I appreciate your concerns but we are actually doing very well thanks, others need your pity.
The VERY best that will happen as far as poor estate agents are concerned is that it'll bumble along pretty much the same as it is now.
What should happen is that prices should fall by 20%.
But they won't because the government and the banks cannot afford it.
So with 5% inflation and 1-2% price falls we will see 25% come of VALUES in the next 4-5 years.
BUT, worse still, average salaries are falling, and so have mortgage income multiples, so it will probably take somewhere between 7 and 8 years to finally shake through the system.
Happy Days...
Continuous negativity is all there is, but I suppose we could all fiddle while Rome burns ;->
Yeah and today it may be warm or cold windy or calm wet or dry!
That's got the weather forecast out of the way then so whats next on the agenda for me?
@CS
Why lie when it patently is not getting better and isn't going to for some time.
I assume you were joking and being sarcastic in response to an article where " the bleedin' obvious" to quote Basil is obviously Halifax's specialist subject.
If not joking then better change your name!!
Cant we just say the Economy is getting better house prices are steady and may rise a little, lets be a bit more confident. instead of this continuos negativity all the time