Further Significant House Price Falls Unlikely

10-Aug-2009
A report from the centre for economics and business research (cebr) says that further significant house price falls are unlikely…

The Consumer and Housing Prospects report from the centre for economics and business research (cebr) predicts that house prices will rise again next year.

Here are the key findings of August's report:

 
  • With mortgage lending tight both in volume and price terms, the cebr forecasts show a "sluggish recovery" in property prices.
  • House prices will fall by another three per cent throughout the rest of 2009, bringing the total peak-to-trough fall from Q3 2007 to around 24 per cent.
  • Between the fourth quarter of 2009 and the fourth quarter of 2010, the cebr predict that average house prices will rise by 2.0 per cent, followed by a further 3.6 per cent increase in 2011.

"Further Significant Falls Unlikely"

Benjamin Williamson, one of the report’s authors and an economist at cebr, said: "The key question now is the extent to which rising unemployment and weak wage growth will lead to a second wave of house price falls, or whether this has already been built in to existing expectations.

"Our view is that the extent of house price falls already seen means further significant falls are unlikely."

Related story:

House Prices Have Less Than Ten Per Cent To Fall
House Prices Have Less Than Ten Per Cent To Fall
 (17 Apr 2009)
House prices have less than ten per cent to fall and will bottom out by the start of 2010, says a new report… ...More

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