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Housing Market Recovering
August proved something of a surprise this year
for those involved in the UK housing market, as this traditionally
slow period has seen things pick up in terms of house sales and
is seen as some as marking the end of the recent recession experience
in the market.
The reason behind the increase in interest from buyers can be
attributed to a number of factors, firstly sellers have come to
realise that they need to be more realistic with their asking
prices and come round to the fact that the market is not as strong
as it has been in recent years. Lower prices always help to stimulate
sales, and this combined with the cut in interest rates from the
Bank of England in early August has buoyed people’s appetite
for properties.
Average house prices fell during the five weeks to September
10th by around 0.4%, knocking over three thousand pounds off the
cost of the average home. With this pushing down the annual house
price growth to 1.6%, and with wage increases running at an average
of 4.2%, houses are becoming more affordable.
Buyers who have been staying away from the market because of
uncertainty about the economy and the stability of the house prices
are now returning, apparently more confident that house prices
have levelled out at sustainable amounts.
While it is currently still very much a buyers market, vendors
are certainly not rushing to drop prices, which is giving us a
stable outlook – the renewed interest seen lately indicates
that the modest reductions in prices have worked to stimulate
sales, helped by better economic conditions.
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