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Uncertainty in the Property Sales UK Market: Are prices rising or diving? Is confusion for once good for the housing market?

March 21, 2009

According to the Nationwide Building Society House Sales UK Prices reduced another 1.3 per cent in January. But, according to Halifax, part of the HBOS group, House prices increased 1.9 per cent in the same period. So, who’s precise, and what does this mean to Home Buyers across the country? More significantly, every home owner in the UK will now be frantically looking for confirmation of one or the other of these very different accounts.

the majority of people will be attempting to work out, first of all who’s precise, and secondly “what does this mean if I want to Sell My House. Are there now individuals out there who are really prepared to Buy my house for a realistic price?”

It looks that the common feeling amongst the so-called professionals as well as amongst the general public is that the Halifax announcement is just too good to be true. The man in the street is left thinking “I’m not sensing a queue of potential Home Buyers lining up to compete to Buy my house, so I’m not sure”. Can it possibly be that this credit crunch is overcome just as unexpectedly and swiftly as it started?

Whatever of the reality of the existing conditions. This recent mixture of news must be a sign that the trends are starting to vary. We no longer have all the indicator aiming unanimously in a negative direction. For the first time in fifteen months there’s doubt about whether prices are increasing or plummeting.

So much of market pricing is decided by sentiment or confidence. Recently, all the cards were stacked in the Home Buyers favour. He was so certain that house values were plummeting, that he could confidently make a low offer, knowing that if the seller wavered about accepting it, the continuing fall in values would purely play in the Home Buyers favour, as the passage of time would bring prices down even further.

Now, there is doubt in the market, and though it’s true to say that markets don’t normally like doubt at all, in the existing strange conditions, doubt may well just facilitate to push us round the corner. Think about it for a moment. Now, the Home Buyers who make a low offer can’t be certain that time is on their side anymore. The man who was only a few days ago frantically trying to “Sell My House at almost any price” now finds that time just might be on his side. Nobody can state with confidence whether time will help the Home Buyers or the sellers. Although, for the first time in well over a year the balance of power has moved to a small extent back towards the seller. Although, slight that change may be, it can only have a constructive effect on house prices.

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