The Halifax House Price Index for January 2009 has shown a 1.9% increase in house prices, offsetting the December fall of 1.6%. Whilst Halifax are clear in the message that a month’s rise does not indicate that house prices will continue to increase, it does indicate that the market is beginning to stabilise.
The even better news for Wales, is that house prices in Wales are holding their value better than the average figures for the UK. House prices in Wales only dropped 3.1% compared to 5.2% for the rest of the UK. However, it is important to note that these are average figures and that local knowledge by specialists is the only way to get a better grasp of the micro-trends that will exist.
Whilst, this means that 2009 may well be a challenging year for many of us, due to other economic factors such as employment levels it does hold some light at the end of the tunnel for homeowners looking to move, but unable to do so.
From an investor’s point of view, many view a downturn in the housing market as an ideal time to continue to invest. With interest rates at an all time low, this is meaning that those on variable rates are seeing lower and lower mortgage repayments. Although deposits required for mortgages are still relatively high there was a 15% increase in the amount of mortgages available on the market compared to December.
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