House prices 'will rise again in 2011' is this really possible yet?
are house prices really going to rise in 2011, now this is something worth following for 2011?????????
from the journal live website
NORTH East house prices will continue to fall for the next two years before property values start to improve again in 2011, housing experts claim.
Anyone selling a house in the region in 2009 can expect offers 5.1% lower than they would have received had the economy not started to slow down.
The National Housing Federation commissioned independent experts Oxford Economics to forecast house prices in the wake of the credit crunch.
They predict that by 2010 thousands of pounds will have been wiped off the value of North East homes, with the average property selling for £132,900.
But they say the recovery will start before the end of that year, 2011 will see modest rises and here will be large rises in 2013 – yet the North East will continue to see homes sell for an average £100,000 less than in England as a whole.
Housing Federation North East regional manager Monica Burns said falling house prices would not necessarily help first-time buyers.
She said: “North East house prices have risen almost five times faster than incomes over the past decade.
“The recent dip in house prices offers us no comfort. It will hurt homeowners who are paying more for a home than it is worth and will do nothing for families trying to get onto the property ladder. The supply and demand mismatch in the North East continues.
“And within a few years there will be yet another period of rapid house price rises, widening the already substantial affordability gap in the region.”
The federation said the current average price of £142,209 was more than eight times the average North East salary.
Last night Neil Foster, director of estate agents Foster Maddison, predicted the market for mature homes would suffer the least and recover fastest after the fall.
He said: “The real growth is a long way off but homeowners should be reassured that prices are not going to collapse.
“Confidence has certainly diminished but it is has not by any means gone away.
“The mature property market, the pre-war properties in Gosforth, the Tyne Valley and in Jesmond are seeing some small changes but we see many that get the asking price.
“I would agree that people simply need to have realistic expectations and advice, because these modest changes are not going to do a lot of damage.
“What we need to be saying to families now is, your home is actually pretty safe, the value will not fall greatly and there are modest improvements on the way.”
He said the buy to let market was going to suffer, but he was confident that Newcastle was well placed to weather the storm.
from the journal live website
NORTH East house prices will continue to fall for the next two years before property values start to improve again in 2011, housing experts claim.
Anyone selling a house in the region in 2009 can expect offers 5.1% lower than they would have received had the economy not started to slow down.
The National Housing Federation commissioned independent experts Oxford Economics to forecast house prices in the wake of the credit crunch.
They predict that by 2010 thousands of pounds will have been wiped off the value of North East homes, with the average property selling for £132,900.
But they say the recovery will start before the end of that year, 2011 will see modest rises and here will be large rises in 2013 – yet the North East will continue to see homes sell for an average £100,000 less than in England as a whole.
Housing Federation North East regional manager Monica Burns said falling house prices would not necessarily help first-time buyers.
She said: “North East house prices have risen almost five times faster than incomes over the past decade.
“The recent dip in house prices offers us no comfort. It will hurt homeowners who are paying more for a home than it is worth and will do nothing for families trying to get onto the property ladder. The supply and demand mismatch in the North East continues.
“And within a few years there will be yet another period of rapid house price rises, widening the already substantial affordability gap in the region.”
The federation said the current average price of £142,209 was more than eight times the average North East salary.
Last night Neil Foster, director of estate agents Foster Maddison, predicted the market for mature homes would suffer the least and recover fastest after the fall.
He said: “The real growth is a long way off but homeowners should be reassured that prices are not going to collapse.
“Confidence has certainly diminished but it is has not by any means gone away.
“The mature property market, the pre-war properties in Gosforth, the Tyne Valley and in Jesmond are seeing some small changes but we see many that get the asking price.
“I would agree that people simply need to have realistic expectations and advice, because these modest changes are not going to do a lot of damage.
“What we need to be saying to families now is, your home is actually pretty safe, the value will not fall greatly and there are modest improvements on the way.”
He said the buy to let market was going to suffer, but he was confident that Newcastle was well placed to weather the storm.
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