Property Search 
What Is Happening To House Prices?
05/06/2009
Recent housing market reports have indicated that house prices rose in May. Aitchisons are not surprised that the main house price indices showed a monthly rise as we achieved strong numbers of sales in May. There is no doubt that market sentiment continues to improve and in our opinion a sustainable "bottoming out" of house prices is getting closer.
However, we share the view of most market commentators, that too much emphasis should not be placed on one months statistics. During similar troughs in the housing market, monthly indices fluctuated before finding a constant path. Indeed previous monthly price rises were reported by some surveys, earlier in 2009 only to be followed by a subsequent reduction.
There remain constraining factors on the housing market including rising levels of unemployment and whilst the availability of mortgages is slowly easing, difficulties remain for those with small deposits or who already own a home that was purchased at the height of the market.
There is no doubt that the continued improvement in activity levels is good news and Aitchisons believes that the gradual market recovery is very much on track.
For many, this is a good opportunity to buy. Prices and mortgages have become much more affordable. House prices are of course relative and for those wishing to trade up, we consider it a particularly beneficial time to consider your next move. It is vitally important to instruct a professional agent with sufficient experience of local achievable sales values. The idea of being able to achieve an unrealistic high price for an existing home and yet also be able to buy a new one at a bargain price, is a non starter. Such an approach will simply mean that there becomes a log jam in the housing market and buyers will be unable to move into their desired new home.
Our recent success is beginning to leave us with a shortage of stock. This is not a positive thing as it can help fuel house price inflation. What the housing market and economy needs is a period of stability.
We hope we can assist you with your property needs and please contact your relevant local Aitchisons office, for a market appraisal.
For your information please find below links to the full May housing market reports from the Nationwide and Lloyds Banking Groups.
