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Surprise rise in house prices.
shelovestobuystuff
Posts: 2,710 Forumite
copied from AOL news page today.Looks like the market has reached its rock bottom already and is climbing again.If you were holding off for the market to drop to its lowest before buying then now may be the time.
House prices rose for the first time in 16 months during March as buyers continued to return to the market, figures showed.
The cost of a home in the UK increased by 0.9% during the month, pushing average values back up above the £150,000 threshold to £150,946, according to Nationwide.
The surprise increase also led to a reduction in the annual rate at which house prices are falling, with this easing from a record 17.6% in February to 15.7% in March.
But the group cautioned against reading too much into the monthly price rise, saying that it was "far too soon" to see it as evidence that the trough in the market had been reached.
More News
Fionnuala Earley, Nationwide's chief economist, said: "The Bank of England has already taken strong measures to ease the tensions in economic and financial markets by cutting rates and commencing quantitative easing. However it will take time for these to work through into the housing market before we can expect a sustained recovery in house prices."
The figures add to the recent positive news on the housing market, coming just days after the Bank of England said the number of mortgages approved for house purchase jumped by 19% during February.
The Royal Institution of Chartered Surveyors also said that interest from potential buyers rose for the fourth month in a row during February, while property intelligence group Hometrack reported a slowing in the rate of house price falls during March alongside a rise in sales.
Economists have greeted the recent run of good news cautiously, warning that, although the housing market may have turned a corner, a sustained recovery in prices was still likely to be some way off with the economy in recession and unemployment rising.
Ms Earley said: "It is still too soon to say that this will be the beginning of sustained house price rises and a reflection of a wholesale return of confidence to the market."
She added that the current upturn in activity was likely to reflect the return of buyers who had delayed purchasing a home during the worst of the financial turbulence at the end of last year.
Last Updated: Thursday, 2 April 2009, 08:38 GMT
House prices rose for the first time in 16 months during March as buyers continued to return to the market, figures showed.
The cost of a home in the UK increased by 0.9% during the month, pushing average values back up above the £150,000 threshold to £150,946, according to Nationwide.
The surprise increase also led to a reduction in the annual rate at which house prices are falling, with this easing from a record 17.6% in February to 15.7% in March.
But the group cautioned against reading too much into the monthly price rise, saying that it was "far too soon" to see it as evidence that the trough in the market had been reached.
More News
- Credit crunch set to ease
- UK and US 'united against crisis'
- More firms freezing pay - research
- Most banks cut returns for savers
Fionnuala Earley, Nationwide's chief economist, said: "The Bank of England has already taken strong measures to ease the tensions in economic and financial markets by cutting rates and commencing quantitative easing. However it will take time for these to work through into the housing market before we can expect a sustained recovery in house prices."
The figures add to the recent positive news on the housing market, coming just days after the Bank of England said the number of mortgages approved for house purchase jumped by 19% during February.
The Royal Institution of Chartered Surveyors also said that interest from potential buyers rose for the fourth month in a row during February, while property intelligence group Hometrack reported a slowing in the rate of house price falls during March alongside a rise in sales.
Economists have greeted the recent run of good news cautiously, warning that, although the housing market may have turned a corner, a sustained recovery in prices was still likely to be some way off with the economy in recession and unemployment rising.
Ms Earley said: "It is still too soon to say that this will be the beginning of sustained house price rises and a reflection of a wholesale return of confidence to the market."
She added that the current upturn in activity was likely to reflect the return of buyers who had delayed purchasing a home during the worst of the financial turbulence at the end of last year.
Last Updated: Thursday, 2 April 2009, 08:38 GMT
"Reaching out to touch the stars dont forget the flowers at your feet".
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Comments
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Its definitely green shoots and hardworking families are jumping in with enormous pent up demand!0
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There's a prize for the first poster to make a reference to deceased felines.0
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Dead cat bounce? Now wheres my prize
Pawpurrs x
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Thanks for the article OP. Esp the one on credit crunch easing - I think once lending eases up, house prices could potentially stop falling (dare I say start to creep up again?).0
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Now the next competition - first to see houses on the market (that have been on for at least 6 months) RAISE their prices in response to this... :rolleyes:
QT0 -
ruggedtoast wrote: »Its definitely green shoots and hardworking families are jumping in with enormous pent up demand!
Ha ha, two phrases that are FAR to overused!0 -
Just a blip and a false dawn,the trend is downwards for the next 12 months.0
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why do you want them to rise?? surely you would rather be wasting money on luxury things than spending it on a huge mortgage.If you find yourself in a fair fight, then you have failed to plan properly
I've only ever been wrong once! and that was when I thought I was wrong but I was right0 -
I don't want house prices to rise either, its like asking a plumber or electrician to rip you off and charge you double for a house repair.
As for the news on house price rises, I don't think anyone actually believes it anyway, hence the phrase dead cat bounce.0 -
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