There has been increase in the residential properties during the last seven months in continuation due to much better improvement in the unemployment sector, people started getting more jobs and there has been relative decrease in the unemployment. This is the as per the latest news circulating on 1st of December, 09.
In the month of November, 09 the there was an increase of 5 % bringing the price of an average property to around £162,800 as compared to similar properties in August, 08. The current prices are about 2.7 % more than of last year. The trend has started slowing down after reaching the highest level.
The Contributing Factors:
- The growth rate considering the previous three months, which give a correct position of the trend moved between 2.8 to 3.8 %.
- The views of the economists, if same trend continues in December, 2009 the gross effect shall be 5 % higher. It clearly indicates behavior of the real estate market is dependent on the labor market.
- One of the reason, why there was no increase in the unemployment, because of a fact that the employers considered a more reasonable option of reducing the working hours instead of reducing the number of workers employed and paying the wages according to the hours worked. This option did affect the income of the workers. The effect otherwise would have been more serious if many people lost their jobs.
- Another factor which was the outcome of lesser mortgage rates in effect resulted in very few persons had to sell their houses the effect of which is reflected in house prices, which reflected stability in their prices.
Source of Information:
The above stated facts and figures from the details made known by the Bank of England depicting the increase in the property loans approved for property purchases, which reflected an increase every month during the last 11 months in continuation. After March, 08 the number of property loans is around 57,500.
- There is a very early recovery of the housing market than it was otherwise expected. The fall in the availability of properties has resulted in relative increase in the prices.
- The prediction made by the economic critics is that these prices are likely to witness fall in 2010, when more properties shall be available for sale.
- The market surveys observed weakness in the house prices in November, which is also indicated by, rebound effect in house prices, which has slowed down putting a question on the strength of the economic recovery, which has internal imbalances.
- The facts further reveal that the house prices at present are moving up only moderately as compared with the spring and summer period. The national house prices Index for the month of number has put the increase to 0.5 %.
- One more fact which is of 0.5 % increase in housing prices of November 09 over that of October 09 that there has been very fast rebound recovery from the house prices prevailing in the month of February, 09 which were all time low figures during last 5 year period.
These facts have been revealed by a leading mortgage lender operating on national level.