by Mark Johnston
House Price Predicts for 2013.
It seems that overall, last year saw an even mix of monthly rises and falls as prices continued to lack any real direction as both demand and supply pressures remained largely unchanged.
The latest figures show that property prices were 1.3 per cent higher in December 2012 than they had been in November 2012, with the average home valued at £163,845. These figures also revealed that house prices rose 0.6 per cent in the three months from October to December.
A report by property search website Rightmove predicts an average rise of 2 per cent in sellers’ asking prices in 2013, they say that this is largely thanks to increased competition among mortgage lenders provided by the bank of England’s ‘funding for lending’ scheme and also of course the continued shortage of homes.
Mortgages are the key to the property market. The vast majority of buyers can not purchase a property without a homeloan and the price, availability and restrictions imposed on these have the biggest impact on their ability to buy a home.
The Halifax expects stable house prices in 2013, the Bank reports six monthly rises and six decreases during 2012 as house prices remained little changed over course of year.
Halifax economist Martin Ellis said: “We expect continuing broad stability in house prices nationally in 2013, with prices likely to end the year at levels close to where they begin.”
The Royal Institution of Chartered Surveyors (RICS) suggested that there would be a 2 per cent climb in property prices during 2013, while the estate agent Savills reckons there would be a more modest 0.5 per cent rise.
Further evidence of the strengthening market comes from some statistics that show a shrinking gap between asking and selling prices, closing to 3.7 per cent this year, down from 4.9 per cent between 2009 and 2011.
The Council of Mortgage Lenders (CML), added that the market should ‘feel more stable and positive’in 2013.
Peter Bolton King, the Royal Institution of Chartered Surveyors (RICS) global residential director, said: ‘There is certainly some optimism creeping back in to the housing market, and it is encouraging to see an increase in potential buyers across parts of the country where the market has particularly suffered in recent years”.
However this said other research suggests that the number of new sellers will be limited in 2013 to around 1.2 million, about the same as each of the past three years.
The Nationwide building society expects prices to remain static in 2013, saying that conditions in the housing market remain “fragile”.
also according to recent analysis from leading accounting firm, pricewaterhousecoopers, house prices will not recover their pre-crisis peak until at least 2024.
Therefore in conclusion most indusrty experts believe that there will be no really change to house prices in 2013, that is unless something dramatic and unexpected occurs to boost home prices. It therefore looks that 2013 will be a repeat of the past few years regarding prices.
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