2010 Property Market
- By property cashpoint
- Published 01/20/2010
It would appear that the future of the property market in 2010 is looking more positive with improvements in confidence and demand towards the backend of 2009. At the beginning of the year an estimated 75,000 repossessions were expected this was revised down by the Council of Mortgage Lenders to 48,000. Although, the sell house fast industry, which specialises in helping people obtain a quick cash sale for their home has experienced a particularly busy year.
In the Nationwide’s House Price Index, prices rose for 9 consecutive months in 2009, resulting in an increase of 2.7% over the last 12 months. The average house price in October was £162,038, which is comparable to early 2006 levels. In London this is even more pronounced, with Haart estate agents reporting that house prices rose by 10% in November increasing from around £274,000 to £302,000.
Many homeowners have been staying put waiting to see what happens in the market. On the other hand others who desperately need a quick house sale have been finding it very difficult on the open market, which is why so many have turned to using sell house fast schemes.
But the question is, are these increases just a result of increased demand being matched by low supply? Some analysts are predicting that we will experience further price falls of up to 7% in 2010. Their rationale is that the recent improvements in the property market are unsustainable and defy the state of the economy as a whole, with rising unemployment and poor credit availability still very much a problem.
Predictably many experts foresee unemployment rates, stock market health and credit availability as the major factors affecting the property market in 2010. If we don’t suffer any more major financial shocks, many predict that property prices will decrease by around 2-3% with increases being as high as 7-9% in 2011. However, if the government needs to make staff cut backs in the public sector this could leave many without a job and facing repossession. This will no doubt mean that a lot of people will need to use sell house fast plans and sell their properties at a discounted price.
The increases in 2009 have been down to all time low interest rates set by the bank of England, which have tempted the blessed who can actually obtain a mortgage to jump in and take advantage. As well as this rental returns are on the increase, this has been beneficial for cash buyers. As stated above the Council of Mortgage Lenders (CML) predicted that up to 75,000 homes could be repossessed in 2009, however, due to extremely low interest rates many have seen their mortgage repayments reduced, which has meant less forced sales and lower supply in the property market. This led to the CML reducing their previous prediction down to 48,000. Unfortunately, many of these repossessions could have bee avoided but the sell house fast industry is not that well known and it’s not as if people can walk into their nearest estate agent and get an immediate cash offer.
What is evident is that the performance of the property market can not be measured on a national level as it differs according to region. If you are thinking of buying or selling your house fast, look closely at your local area and how it has performed. Look out for areas which rely heavily on the public sector for employment as these areas could be at risk. And most importantly keep an eye on rising interest and unemployment rates any increases could spell further trouble.
