James' Blog about Property

Discussion, advice and philosophical points about all things property whether UK or International markets

Property Market Returning Part Two……

Posted by jamesdearsley on April 2, 2009

Further to my post yesterday, there has now been a news story released today from the Nationwide.

“House prices rise for the first time since March 2007”

Perhaps this is an amazing coincidence but it may show another sign that the market is starting to regain some confidence.

Looking at the absolute fact, house prices rose 0.9% in March to an average price of £150,946 and is obviously a welcome sign for some. However, before we all jump on this lets just take a deep breath for a second. This report suggests that reasons for the increase include people having held off for a while and this could just have been the month when they decided to dip their toes back into the water; they also suggest that job relocations also lend a reason why this has seen an increase.

Being the optimist and not agreeing with many who are still breathing negativity I just think this will do the market a lot of good. In a market driven by confidence I think this is a major step in the right direction. I have always lived by the following mantra:

“First comes better figures and following quickly behind is confidence”

Based on this alone, we are starting to see positive figures returning (as suggested in my post yesterday about the UK and Overseas markets) and I really believe that this will start to support that little bit of confidence – you only have to look at the Bank of England releasing the figures last week about Mortgage approvals increased more than expected in February to 38,000 (from 32,000 in Jan)

Okay, this is not going to kick start the market immediately to double digit growths (which it is doubtful we will see for some time) but I predict that this will be the start of a little bit of confidence returning……..

Link to whole article on BBC website – http://news.bbc.co.uk/1/hi/business/7977683.stm

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