Tuesday, December 29, 2009

2009 - the year house prices defied gravity



There are some interesting statistics in this Times article published today about the UK property market.

It was the disaster that never happened. The picture at the end of 2008 appeared bleak: property prices had plunged by more than 14 per cent, hastened by the collapse of Lehman Brothers in September, and almost every market commentator forecast Armageddon for 2009.

The article reports that house prices fell (but not dramatically) and have risen again in most areas. Yet still one agent in six had to close their doors due to lack of business.

It's worth reading the whole article especially the last paragraph which caused me to spit out my croissant at the breakfast table:

This month the Nationwide consumer confidence index found that 84 per cent of the public believed that the economic situation would be the same or better in six months’ time. In contrast, many agents suspect that 2009 has been too good to be true.


84% of the general public think that the economic situation would be the same or better in six months time.

As a Spurs supporter since the age of six, I have had to inject my life with a particular brand of blind optimism which defies reality.....it now looks as though this has rubbed off onto the citizens of the UK.

Let's hope they're right.

www.cognacproperty.com

1 comment:

Steve said...

To continue the football related thread.. I'm not a big follower of football myself, but look at the difference in the performance of Spurs this season compared to last season!!

On the housing front. Estate agents are closing because of the lack of houses being put on to the market. People don't want to be in negative equity if they don't need to be. No houses no commission, no profits..

But there's no shortage of buyers people are cashing in on the lower prices compared to two years ago and wanting to buy, but with so few houses on the market... that is what is making the prices rise. Admittedly slowly, but steadily.

Still hopeful on exchanging contracts here in early 2010!!!!