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Increased optimism for the housing market

Recent housing market figures have seen something of a change. The Nationwide has now reported that house prices increased in two of the last three months.

While it is clear that the level of turnover is still incredibly low and the prices rises are possibly reflecting more a reported relative shortage of properties up for sale, the latest figures do break a long period of negative readings.  How things develop from here will depend on many factors, not least of which will be how the economy progresses.

The rise in new buyer eqnquiries reported in the syrveys from the Royal Institution of Chartered Surveyors has continued and the level of house purchase approvals, though very low, is higher higher than a year ago.

Given the considerable uncertainties, it is still very early days for looking forward at all confidently. There has been a great deal of speculation about what recovery (when it does come) might look like - a 'V' or a 'U' or an 'L' shape (and other shapes as well).

However, the mortgage market has reactied positively by improving loan to value rations and providing more choice for those borrowers needing mortgages of 75% and above. 

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20 May 2010

HIPS suspended: Good news for vendors

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