RealEstate Web Design  
Your Email:
Your Password:
view demos

Added: January 13, 2010
Article rating: 2.6 (of 5) - 5 votes

2010 Property Market Predictions

[ by Louise Goldstein ]
It would appear that the future of the property market in 2010 is looking more positive with improvements in confidence and demand towards the back end of this year. As reported in 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.

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.

Many predictably foresee that unemployment rates, stock market health and credit availability will be 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.

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. Also last year 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.

A factor which could impact the state of the property market is that the government might well have to cut costs in order to assist in balancing the fiscal stimulus, which has taken place. If this means cutting jobs in the public sector it could result in many people losing their homes. As a consequence this could affect public confidence in the economy, increase unemployment rates can cause over supply in the property market.

What is evident is that the performance of the property market can not be measured on a national level as this varies drastically. 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.

Your opinion is the key to delivering valuable content. Please rate this article.

Current rating: 2.60 (of 5) - 5 votes
  • John January 22, 2010
    This article relates to England, right?
  • Ken Shiver January 21, 2010
    Interesting predictions. We are all very interested in what will happen on the real estate market this year.
 Related articles

Privacy Policy | Terms of Service | About Us | Contact Us | Advertise with Us
© Copyright NetReal Media, 2002-2024. All rights reserved.

REALTOR® -- A registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. NetReal Media is not affiliated with REALTOR®, its logos or trademarks, being a third-party technology company providing Real Estate Web Design and e-Marketing solutions for Real Estate Agents and Brokers. Thank you for your interest in Real Estate web design.