A recent report has shown how many consumers still expect property prices to continue rising, despite evidence that shows that property prices have already fallen and despite predictions from industry experts that property values will continue to fall in the coming months. Many analysts and economists have predicted that house prices will fall over the coming months, and in September there were figures that showed an unexpected fall in property values.
One industry official reiterated that house prices are expected to fall, stating: “There is increasing evidence that the housing market is slowing down following five rate rises and the recent credit crunch. Rate rises are already beginning to hit people’s finances and could well undermine future confidence.”
However, despite predictions such as these a recent survey showed that many consumers are still confident that house prices will continue to rise.
Over one thousand adults were polled as part of the survey, which was carried out by the Association of Investment Companies. Around 60% of those polled thought that house prices would continue to rise despite evidence to the contrary, following an unexpected 0.6% fall in property values in September. However, over one thousand active investors were also polled and less than half of them thought that house prices would continue to rise.
Most analysts are expecting a more subdued housing market over the coming months, with house prices expected to continue falling amongst industry professionals. This could spell good news for first time buyers, who have been struggling to get a mortgage loan for the amount needed to purchase a property at current values.
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