Estate agents predict 2% rise in market for 2010

Estate agents expect house prices to “nudge upwards” next year.

The Royal Institution of Chartered Surveyors is forecasting a modest 2% rise in 2010.

The RICS also expects the number of homes changing hands to rise from 55,000 a month to 70,000.

Many experts believe the shortage of property for sale helped to fuel recent price rises.

This “imbalance between supply and demand” is likely to remain for a few months says RICS economist Simon Rubinsohn.

But the VAT increase, looming general election and an end to the stamp duty holiday will probably limit any recovery.

Rising unemployment and cautious lenders also pose challenges.

“Transactions are likely to increase, fulfilling the Christmas wish list of many agents,” said Rubinsohn.

“But many first-time buyers will continue to struggle for finance unless they get help from generous relatives.”

WE SAY..

It is hard to see a return to the house price boom of recent years and we should all be thankful for that.

Runaway prices, fuelled by reckless lending, made it impossible for many first-time buyers and low-paid workers.

But the market could grind to a halt again next year unless banks stop stinging people with modest deposits or turning them away altogether.

Source: Mirror.co.uk

Coalters Estate and Letting Agents in York are York’s award winning estate and letting agents. If you are looking for a york estate agents, contact Coalters via their website www.coalters.com or call them on York (01904) 655222.

Tags: Property news

This entry was posted on Wednesday, December 23rd, 2009 at 15:33 and is filed under Property news.