Great news if you own a property in the UK; house prices rose 0.6% in June.
Trying to sell your house can be a trying experience
Ok, so it’s not earth-shattering news and 2-year projections show that prices are likely to continue to fall with a full recovery in the housing market unlikely before 2011. Home-owner in Wales are some of the hardest hit with average house prices in rising just 0.5% in July to £169,109 which is still 6.1% down on July 2008.
The Welsh also experienced the most severe price drops in the UK at more than 4% and if you’re trying to sell your house, it doesn’t end there. There’s still a chance that house prices could fall in the second half of the year as well if mortgage lending remains tight, repossessions hit the market and unemployment continues to rise.
The 2011 recovery projections have been put together by the University of Glamorgans, Dr Stuart Paris, who has developed a model that can predict changes in the housing market. The model uses variables including:
- Unemployment levels
- The ratio between house prices
- Average earnings
- Bank of England base rate
- Relationship to average earnings
…to predict the direction of the future housing market. Scary.