Property prices look at though they will end this year at a higher level than in January, as mentioned in one of my previous posts, this is going totally against many industry experts predictions and causing some red faces. There has now been 5 months of consecutive rises in the UK market if you look at the figures produced by Nationwide.
This means a 4% increase up to now this year and if it continues we will be looking at approximately a 6% rise in total at the close of the 2009.The average property price is currently standing at £161,816 — this, rather surprisingly is only 13% less than the peak in 2007.
The Times newspaper consulted some industry experts so see if they envisage this increase in prices will continue and their responses don´t seem particularly positive. Comments from the Royal Institution of Chartered Surveyors (RICS), think that prices may get back to the 2007 peaks within eight months, but they did also say that they think that past that, rises are unsustainable.
Also Fitch, the ratings agency, think that prices will fall sharply next year, suggesting a possible 17% drop in 2010. From my perpective although unemployment is a massive concern, I cannot see a big correction next year, we may possibly have a new government and I also think that many lenders will also improve liquidity allowing more people to go ahead with their purchases. It is my opinion that everybody is scared to offer anything other doom and gloom, even if actual figures point to a different story.