Green shoots?

By Sue Warwick National Sales and Marketing Director of Miller Homes.

The news from the Department of Communities and Local Government that the number of new homes built in the second quarter of 2009 jumped by 63% in comparison to quarter 1 is a real shot in the arm for the housebuilding sector.

When taken with the news that completions have are 24% higher than quarter 1 there is clear evidence that something very positive is happening in the housing market.

So what does this mean for homebuyers?  Well my message to them is: don’t assume prices will stay low just because the supply of new homes is increasing.

The simple laws of supply and demand come into play here.  The fact of the matter is we still have a supply problem that will drive prices over the medium term.  And the proof of that lies with the recent numbers from Nationwide which show that house prices rose 1.6% during August the fourth month in a row.

So if you want to take advantage of low prices and get a good deal you should act now.  That’s particularly true for First Time Buyers who should also remember that there is a limited supply of shared equity deals such as Home Buy Direct and MiWay.