House prices could start rising
September 25, 2008
There has been a lot of doom and gloom in the financial news over recent months in relation to falling house prices, with property prices already having fallen for a number of consecutive months. In fact, property values are now said to be at the same level as they were in August 2006, and industry officials are expecting them to continue falling over the remainder of this year and possibly over part or all of next year.
Many homeowners, such as those that purchased their properties more recently and those that took out 100% mortgages, have been concerned over the risk of falling into negative equity, where they owe more on their home than the property is actually worth, and a number of industry officials have stated that close to two million homeowners could be affected by negative equity in the next couple of years.
However, according to one industry group there could be another turnaround in the housing market, and prices could actually start to rise again.
Officials from The Centre for Economics and Business Research have predicted that the middle of next year could see the fortunes of the housing market turnaround, and that house prices could start to rise again towards the middle of 2009. This could help many homeowners to avoid falling into negative equity.
The consultancy has gone on to say that in some areas average house prices could rise by as much as £50,000 by the end of 2012. Officials added that it was the lack of new homes that were being made available across England and Wales that would drive house prices back up again, after a period of month on month falls.
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