As you walk from one spot to another or busy with your head buried on that computer you keep trying to decide: is 2011 the year to buy that house, should I wait a little more and see if prices would fall further? The figures are a little too fuzzy at the moment to really make a sound choice.
Figures readily available show that houses are at their lowest prices in seven years in the U.K as in many other parts of the world; this is owed to low interest rates and drastically falling house prices (see http://www.citywire.co.uk/money/house-prices-fell-in-snowy-december-surveyors-report/a463745). The uncertainty lurking around is not whether the prices would rise anytime soon, it’s a question of how much lower can they get?
The contraction in the economy of 0.5% in the fourth quarter of 2010 was a surprise to many following the release of GDP figures (see http://citywire.co.uk/money/gdp-shock-scotches-early-rise-in-interest-rates/a465629?ref=citywire-money-latest-news-list). These figures don’t look like they would change this first quarter of 2011, but another three months of negative growth would officially welcome a double dip recession.
If you ask me, I’ll say the U.K government would do everything possible to avoid that. So where does that leave us? If you buy before the new figures are published in April you might be smiling to the bank when prices go back up, otherwise you might spank yourself for not holding on long enough to benefit from further price crash.
So the choice is yours – a bit risky I must say. Even speculators and forecasters are at a loss here as per what might happen in the housing market in the next few months. My candid advice – a little wait won’t do you too much harm!
