Data data everywhere but what is going on?

 

 

 There has been a host of new housing data over the last week some of it contradictory so homebuyers can be forgiven if they are a little confused about what is actually going on.

First the Royal Institute of Chartered Surveyors said that more and more of their members were reporting rising property prices.  The NAEA the National Association of Estate Agents then chipped in with the positive news that families wanting to move to a bigger house and first time buyers were returning to the market in very promising numbers.  Then the Conveyancing Alliance revealed a 30% month on month increase in purchase instructions from July through August and finally the Council of Mortgage Lenders told us that the number of loans approved for house purchases had risen by 19% compared to one year ago.

However in amongst all this positive news was some cold water poured on by the Ernst & Young Item Club who warned that the recent rise in UK house prices was a ‘false dawn’ brought on by a shortage of properties.

So what is really going on?  My gut feeling is that we need to listen to those at the sharp end of the market namely Estate Agents.  If they are saying the market is beginning to move then there is genuine reason for optimism.  As for ‘false dawns’ the historic supply demand imbalance within the UK’s housing sector has not gone away it has just been obscured by the economic downturn.  We still have more people wanting houses than we have homes to sell.  This will continue to drive prices.

The curve of the house price graph is now firmly in the upward direction and anyone considering making their first move onto the property laddersuch as renters and first time buyersshould act now before prices go beyond their reach again. 

 

Sue Warwick National Sales and Marketing Director