Gloom Or Growth?

Economists are predicting that overall house prices will rise by 15 per cent over the next five years, as housing crisis counteracts economic gloom.

However, If house price did rise 15% over that period it would be an average of 2.8 per cent annually – which is still a far slower rate than the 1980s to 2000s period.  Others have suggested that this is actually the start of ‘a slow-motion crash – so slow that many commentators will not even see it. They will observe only the shorter-term .

Others have suggested, the market is collapsing in slow motion, declaring it may be difficult to see if you’re looking short-term and this is all linked to consumer credit and buying confidence. Mortgages for house purchases fell below even the level seen during the 2008 and 2009 property slump when house prices were falling at almost 20% annually.