CB Richard Ellis Warns Against Complacency Following Housing Market Rebound
London, 9th October 2009 - CB Richard Ellis’ latest MarketView warns that despite positivity in recent residential market trends the road to recovery may not be smooth. The housing market is particularly vulnerable to changes in supply and demand due to the low level of transactions in the marketplace.
Jennet Siebrits, Head of Residential Research comments:
“House prices are likely to end the year higher than at the start of 2009, but only slightly. While every house price increase is a step in the right direction, residential market activity is returning from a very low base so a sustained recovery is some way off.
“The lack of distressed sales has played a crucial role in stemming the downward price spiral. The low interest rate environment coupled with the open dialogue the Government encouraged between lenders and borrowers through their mortgage support initiatives has helped keep repossessions in check.
“At present, recent increases in the number of house-hunters have not fully translated into transactions. Buyers are still cautious and those willing to take the next step have been hindered by lack of available finance and a shortage of quality stock.
“The number of sellers has started to rise and this is expected to continue through the autumn. If last month’s fall in the number of house-hunters continues, this could redress the supply and demand equation in favour of the buyer, leading to further house price falls.”