Quality Speaks For Itself

Halifax survey says house prices rose in January!

Posted in Financing by Ash on February 6th, 2009 09:41am

Well the Halifax stats that were released yesterday certainly made me sit up and take note. House prices ROSE, yes ROSE by 1.9% during January, and brings an end to 10 consecutive months of price falls. But should we believe them?

I’d like to. My house, like many I guess, has spent the last 6 months in freefall. Luckily I don’t have to sell it and hope that in a few months time it will pick back up again. But realistically it may not happen for years. I see little sales movement in Greater London and the majority of people that I speak to think that whilst prices may not have that much further to fall that they will not be heading upwards any time soon.

However, the number of optimists is starting to grow. However, as noted in my previous post, figures from the Bank of England show mortgage lending rose in December from the previous month. Last month the Woolwich launched its cheapest ever mortgage.

Also the Royal Institution of Chartered Surveyors says it’s seen a jump in new buyer inquiries. It also reports anecdotal evidence suggesting that recent interest rate cuts, combined with house-price falls, are beginning to tempt first-time buyers back into the market.

We seem to be entering a period of “data confusion” with different data giving conflicting messages, perhaps an early sign that we are nearing the bottom certainly with regard to the housing market.