House Prices to Recover in 2013
BBC.co.uk is reporting that house prices won’t get back to where they peaked in 2007 until 2013. The source of their information, the Centre for Economics and Business Research (CEBR), is also predicting prices will fall another 25% by the end of 2009 and then level off.
If this forecast is correct, this means that we should expect the average house price to bottom out at close to £157,000, £50,000 less than at it’s peak a year ago before it begins to rise again in 2010/2011.
The finanial crisis that has evolved into an economic crisis with more unemployment and falling household income, has crushed confidence in the housing market. Few mortgage options have left a small amount of sellers chasing an even smaller number of buyers.
I think Daniel Lee of Property Search Engine, summed up the situation well:
“Mortgage finance is a lot tougher to secure and many sellers still are not dropping their prices to realistic levels. They are in 2008 but have a 2005 mindset,”
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