House Prices – Latest!
by NicolaCairncross on July 28, 2008
in Money Gym | Diaries
Nicola says: I dont’ really need to comment do I? Should I email to friend’s bf or just not bother? LOL
28/07/08
The National Housing Federation have forecast that house prices in England & Wales will rise by 25% by 2013.
The federation states that while there will be a slight reduction in 2008 of 4.4% and a smaller reduction of 2.1% that house prices will quickly recover and will be rising by 9% in 2012 and 2013.
It states that one of the reasons for the growth bounce-back is that there is a great demand for housing and this demand has not diminished but in fact will grow. The demand will be partly prompted by the cutback of new houses on the market as house builders mothball and delay projects during the current housing uncertainty. People are also living longer and the high rate of divorce continues to prompt demand for even more housing as couples split up and need two homes instead of one.
The Federation predicts that the cost of an average home in England by 2013 will be £274,700.
Therefore investors need to consider 2008 as the window of opportunity to buy property as cheaply as possible. There are still a large number of motivated sellers but as soon as the market starts to recover then these sellers will be more tempted to wait or increase their prices. It is probably that the current buyer’s market will only last for another 12 months so investors should consider buying now rather than paying higher prices in future years.
