Further signs of a recovery in the Housing market……
Posted by jamesdearsley on August 13, 2009
It has been interesting watching the news recently.
- We have now had four months of continual house prices rises regardless of which indices your are watching
- Economical figures from the UK, Europe and the US are looking more positive that expected
- The FTSE 100 has rallied to a 14 month high and these gains are also seen elsewhere
All this is good for confidence which is ultimately what the housing market needs. I do think we have to be careful about jumping on this wave of optimism. Ultimately, we still have grave concerns on our banking system (not to mention the European Banks who have not disclosed all of their exposure still) and unemployment, though a lagging indicator, is still due to rise about the 7.8% current levels. There was also the surprise decision from the Bank of England to start up quantitative easing once more to the level of £50billion. All this suggests they are concerned about the general state of our economy.
I am still convinced, as I was several months ago with the article written about the “W shaped recovery“, that we are going to see this rally until September and then there will be several difficult months ahead. We will then start to see the general economic recovery Spring time next year and this will have a housing market piggy backing alongside. We can never underestimate the effects of unemployment on the general population. This is going to hit us hard in coming months.
Just to finish on one aspect however. The key point here is that we are talking about recovery. Ultimately the housing market needs confidence and this is what we are starting to see in the Media. People will feed off of this now and the housing market recovery will start building speed.
Best wishes everyone.