House prices are showing signs of greater stability after the falls in the second half of last year. Today Hometrack released figures showing prices in March were just 0.1% down while Nationwide released a figure of plus 0.5%. But the big question on everyone’s mind is where to from here for the market as homebuyers and sellers adjust to the squeeze within the economy. And among construction folk what does this all mean for house building.
The final Halifax index for 2009 has been released and it settles on a December 2009 average house price 5.6% above that of December 2008. This is roughly in line with the figures from Nationwide which show a 5.9% rise. It is easy from this to draw the conclusion that on average your house is worth about 6% more than a year ago. That would be an ill-advised assumption at best and foolish at worst.
It’s the time of the year for reflections, resolutions and prognostications. And what can be more fun than guessing the likely path of house prices? Well I can think of a few things. And I’m also left wondering why anyone would wish to state a house price forecast publicly and put their reputations on the line. Predicting house prices currently is a bit like trying to pin a tail on a bucking donkey while blindfolded and in front of a sneering audience….