The Only Home Truth About Property is Unpredictable PricesMake Text Bigger
Topsy-turvy house prices were up 1.2% in October, but after almost a year of monthly increases and falls they are more or less where they started in October last year.
If any truth has hit home in 2011 it’s that the property market is unpredictable.
In the past 10 months, the market has gone up month-on-month five times, fallen four times and stayed steady for one month.
The price of an average home is now £163,311, according to the Halifax.
Martin Ellis, the lender’s housing expert, said: “The housing market has proved highly resilient in recent months despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies.
“The prospect of exceptionally low official interest rates over the foreseeable future is likely to continue to support the market in the face of a very difficult economic climate. Both prices and activity levels are expected to remain close to current levels over the coming few months.”
Meanwhile, estate agents report little change in house sales or the number of unsold properties on their books in the past 12 months.
Most agents report house prices remained stable last month and do not expect any major change in the near future.
RICS housing spokesperson, Ian Perry, said: “It is encouraging that activity levels appear to have edged upwards over the past month. Indeed, chartered surveyors are generally upbeat about the near term prospects for transactions.
“Chaotic events in the euro area threatening to spillover to the UK and banks still imposing tough conditions on loans to first time buyers, any recovery in sales is still likely to be relatively modest. This will inevitably leave many people who would like to own a home unable to access the market.”
Other recent house price surveys by the Nationwide and property portal Hometrack recorded slight falls in property value.
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