Banks expect house price rise over next 12 months...

22 June 2009

3630 Reads
12 Comments

Written by rosalind renshaw

Property prices are expected to rise by an average of 1.4% over the next year, according to the latest Building Societies Association tracker survey.

It found that cautious optimism has returned to the housing market. Previous results showed that respondents predicted a 6.1% fall in prices in the March survey and a 7.1% annual fall in June 2008.

However, 61% of respondents cited job security as a major barrier to house purchase – the same proportion as in the March survey.

Paul Broadhead, head of mortgage policy at the BSA, said: “People clearly recognise that with both property prices and mortgage rates having fallen, there are potential bargains to be found, meaning that now is a good time to buy.

“However, for many, concerns over job security mean that they are unlikely to actually go ahead and buy. They will need to see confidence in the jobs market return before they make their move in the property market.”

Comments

- PeeBee
MonkeyTennis - your upset is understandable. You had a 50:50 call - you made the right decision unfortunately too early for it to work in your favour. You could so easily have been right, of course - in which case you'd have a completely different outlook on the current situation. This is the problem - that NO-ONE has a 100% unbiased opinion on the market. In reality, everyone should look to property value growth as a good thing - it is the uncontrollability (and rapid onsets) of the rises and falls which cause the laughter and tears. Just remember, by the time you see a rise in the market, you will already have cost yourself in terms of purchase price. If your next home will be, as you so aptly put it, simply a roof over your head, should you not consider doing the deed now and not let if's, but's and maybe's cloud your decision? Even a smaller property than your last one will at least give you a foothold...
- 25 June 2009 16:17 PM
- MonkeyTennis
PeeBee it was certainly not you that upset me and just the situation. When will people realise that a house is for living in and not just a cash machine thats what upsets me. I sold my house in 2004 as I could see an almighty crash comming and moved back home with my mum and dad. Now I cant afford to by my old house back unless prices fall 50%. from 2007's peak. So now you know why im so bitter.
- 25 June 2009 15:48 PM
- PeeBee
Monkey Tennis - you say "Ok maybe I went over the top with 50-60% I was just upest and picking a figure from thin air." Not like you, Sir - your posts are normally well thought-through and on the mark. Respect for owning up to your little overreaction - although I hope it was 'the situation' that upset you, not yours truly...
- 25 June 2009 13:57 PM
- PeeBee
Peebrain - not at all. If you look you will note the FIRST comment to this story is in fact mine. I then responded to Monkey Tennis' post. MY point was...still IS...that 'good' news never seems to attract any comment from EAT readers - you all simply want to add weight to negative press. Self fulfilling prophecies are just that - and you now all seem not only to believe them, but are quite happy to allow them to worsen the situation. An Estate Agent's primary function is to achieve the best possible result (ie highest price in the optimum timescale tailored to the clients' needs) for their client - in the vast majority of cases, the seller. Downselling just to get a property off their books/'sold' sign up/make up the numbers to appease the boss should not come into the equation. But we ALL know that it does.
- 25 June 2009 12:56 PM
- Big fat banker
.............come on then banks if its all okay then start lending and get prices back up so all us agents can go to barbados on holiday again and get a new 911, most of all it would be great just to wind BIG BILL up whos obviously a peasant that could last afford a house in 1991
- 24 June 2009 21:08 PM
- MonkeyTennis
Ok maybe I went over the top with 50-60% I was just upest and picking a figure from thin air. But the truth is I dont want to stay living with my Mum and Dad for ever and its not fair that I didnt buy a house when they were cheaper and its just not fair.
- 24 June 2009 13:55 PM
- Mike Shitside
Monkey Tennis "you remind me of a young jonathan davis" 50-60% fall!!! Dont get me wrong I am a realist and dont expect to see a huge turn in the market upwards, but I am will to take a bet that prices dont come down 50-60% you doom mongering, rent for ever, bitter and twisted tosser.
- 24 June 2009 13:50 PM
- Peebrain
Took someone esle to let you comment Peebee?
- 24 June 2009 12:36 PM
- BIG BILL
Well said monkey tennis , house prices are still unaffordable to the vast majority out there .
Prices NEED , MUST and WILL drop to more affordable levels despite what various vested interests might want .
- 23 June 2009 16:16 PM
- PeeBee
MonkeyTennis - you took your time...but you came up with a beaut! Knew I could rely on the regulars to pee on the fireworks!
- 23 June 2009 11:45 AM
- MonkeyTennis
Its very simple. Fiscal Stimulus + 0.5% base rate have made properties affordable. Any house price rises we get now will be shortlived as the fiscal stimulus + 0.5% base will ensure a build up of inflation in the near future. This in turn will lead to higher interest rates to stave off inflation = higher mnortgage repayments. Add the growing failure of business and rising unemployment, house price will be ridiculously out of reach. In the nadir of 1995 affordability for a strater 1 bed flat was 2x average wage. Now its 5 x average wage. So about 50%-60% fall in house prices to come basede on the last property recession. Happy days.
- 23 June 2009 09:44 AM
- PeeBee
The silence from you all is deafening! Wassup - finding it hard to turn a positive into a negative?
- 22 June 2009 13:09 PM