House prices: Economists' predictions
- 23rd November 2009
- Selling Property News
Economists mistrustful of the recent rise in the value of property in the UK market, predict fluctuating prices.
According to research by Bloomberg, Information Services specialist, nine of fourteen Real Estate Brokers and Economists surveyed expected a decline in house prices.
This is after the surprise early recovery of UK property this year, as Bloomberg record an average prediction of a 1.6 fall in 2010.
Chief Economist of Halifax, Martin Ellis, predicts little change in house prices by the end of the year. While Nationwide's Chief Economist, Martin Gahbauer, expects the price of the average home to reach £161,000, an increase of 5 percent.
Not all those surveyed were quite so conservative. Speaking on behalf of Capital Economics Ltd, Housing Economist, Seema Shah said: “The market is still overvalued, whichever measure you use.
"Prices need to fall a further 20 percent to 25 percent to get back their long-term trend.”
Stephen Ludlow, Director of ludlowthompson said: "As we continue to work through this recession, the key is for a slow and steady increase in house prices, which will create long-term sustainability."
The key is for a slow and steady increase in prices.
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