Halifax, a company with an interest in a buoyant property market, has stated that the annual rise in house prices to January in the UK has almost touched 10% (9.9% in fact).
The low supply of properties, coupled with demand from those with sufficient deposits, has brought about this rise. The question then arises as to whether the recovery is sustainable.
Answer?
No.
As more people are tempted to sell their properties, on the upswing of a rising property market prices, will fall as there are simply not enough people around with sufficient funds to buy them.
The property market during 2010 will in fact be flat, and the 10% rise be seen as a dead cat bounce.
I do agree with the above.
ReplyDeleteMost of the house purchases this year are people who have to move.
Also the sheer amount of press on this issue caused way too much panic and depressed house prices much more than they needed to be.