23
Mar
Affordability to continue improving, says analysts
House prices will continue to fall this year, making homes more
affordable, a survey has predicted.
The Reuters poll of 36 experts from the financial sector expressed
a consensus that there will be a 14 per cent drop in prices this
year, with another four per cent to follow in 2010.
Of the forecasters, 23 said they expect it to be a year or more
before prices stabilise.
David Page of Investec Securities told the news provider it is
clear that buyer interest for homes is increasing in the current
circumstances.
He noted: "Affordability is driving that [rise in demand] while
interest rates are dramatically lower."
Last week, figures from the National Association of Estate Agents
(NAEA) showed that the number of sales per average estate agent in
February was up to eight, with this increase reflecting a return to
the levels of 12 months before.
NAEA president Chris Brown observed that this showed higher demand
is "slowly but surely translating into sales".
