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February Property Auction
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Make or break

The next twelve months could make or break the housing market, according to new analysis...

Three things need to happen fast to start the recovery of the housing market in 2009, says the National Association of Estate Agents (NAEA). Peter Bolton King, Chief Executive of the NAEA has said his wish list for 2009 includes:

* Major lenders must begin to make money available to potential buyers

* Cuts in interest rates must be passed onto the market

* Consumers must begin to recover confidence in the state of the housing market

After a year of gloom in the housing market, Mr Bolton King said that 2009 is likely to be the year the recovery begins. Interest rates are likely to fall further, and house prices will bottom out, he predicted, adding that in some markets, the bounce back could be as dramatic as the fall.

 ‘Officially house prices have come down since their peak by around 13 per cent, but speaking to members it seems clear that in some areas at least prices have come down by more than 20 per cent.

‘However it is also clear that parts of the market are perhaps beginning to bottom out, and it seems possible to me that once the recovery begins, we could see a bounce as pronounced as the fall.'

He also warned that if changes do not come about then the market could stagnate which would have dire implications not only for the thousands of people employed in the profession but for the economy as a whole.

Source: Country Life


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