14 Dec 2012

Predictions for the Housing Market – The Year Ahead

Insights, Property, Publications

The Times gets opinion from a panel experts on their predictions for the housing market in 2013.

BNP Paribas Real Estate predicts that 0.9% rise in nationwide house prices, with growth of 6.6% in London and 2.7% in the South East.

Halifax chooses to sit on the fence, predicting growth of either 2% or a decline of 2% depending on how the economy performs. Hometrack says that it expects prices to fall by 1% over the year.

It forecasts 912,000 sales being made nationwide. Jones Lang LaSalle’s Jon Neale and Neil Chegwidden believe that the market will move from neutral into first gear in 2013, with a rise of 1%, and into second gear in 2014, advancing by another 2.5%.

Knight Frank feels prices could fall by up to 2%. “A further correction in prices is needed as the relationship between average earnings and average house prices is well above the long-term average,” the firm’s Gráinne Gilmore comments.

Legal & General says that the market has now hit rock bottom and predicts a slow movement towards recovery midway through the year. Rightmove thinks that asking prices will improve by an average of 3% in London and South and 1% in the rest of country, as sellers believe buyers are finding it easier to obtain mortgages.

Taking the long-view, Savills says that average house price in the mainstream market should be 3.5% higher by 2017.

Source: The Times: Bricks and Mortar Supplement

We say: Or, in summary, the collective view of the experts in the field is that you might as well slaughter a chicken or closely examine the bottom of your tea-cup.