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House Prices at a 3 Year High

There is talk that due to lack of supply in good areas is forcing house prices UP.  The downside to this is that many agents are commenting on the amount of time property is sat on their books without offers being accepted.

Director of Rightmove, Miles Shipside has said: "The Bank of England's decision to hold interest rates at unprecedented low levels has disrupted the traditional economic formula of an excess of supply over demand leading to lower prices.

"It has thrown some sellers a lifeline in their quest to hold onto the gains they made during the boom era, though the market has failed to build up a head of steam due to continuing red signals from mortgage lenders, and the normal spring momentum being diverted into a siding by the warm weather and the royal wedding.

"One interest rate rise won't immediately derail the market but if we see several in quick succession it will quickly hit the buffers."

 

 

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Added By: gbressington on 16th May 2011 at 11:02
Number of Views: 258

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