Property values will climb 2 percent between the fourth quarter of 2009 and the end of 2010, the London-based consultancy said in a report today. Prices will decline by 3 percent in the rest of this year, bringing the total drop from the 2007 peak to 24 percent.
“The extent of house price falls already seen means further significant falls are unlikely,” said Benjamin Williamson, an analyst at the CEBR. “The key question now is the extent to which risingunemploymentand weak wage growth will lead to a second wave of house price falls, or whether this has already been built in to existing expectations.”
The property market may be starting to bottom out after the worst recession in a generation discouraged companies such as Taylor Wimpey Plc and Redrow Plc from building new homes. The Royal Institution of Chartered Surveyors said last week that prices may rise “slightly” in 2009, reversing an earlier prediction for a drop of as much as 15 percent.
Source: Bloomberg 10 Aug 2009
Comments (1)
doesn't actually make too much sense! will climb 2% then decline by 3% - talk about sitting on a fence! Lots of 'may be' in there. RICS aren't helping matter much either by seeming to be at the beck and call of the mortgage lenders who are asking them to 'undervalue' by 10% of their judgement price rather than the lenders admit to not offering better than a 60/40 LTV ! Who is pulling whose strings?
why waste print space on this unhelpful diagnostic?
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