Three months into 2012 and so far we have had a mixed bag of economic news which can affect confidence in the housing market, there were ups and down in 2011 but the big crash that commentators and doomsday merchants spoke of never came, house prices were below their previous highs of 2007 and 2008 but remained stable with only minor fluctuations. So we have a stable housing market up and down the country with the exception of the capital, London is powering ahead in all the statistics relating to house prices.
With a stable housing market at its current level and the fact that we managed to avoid the double dip recession, it is starting to look like we are pointing in the right direction and naturally as the economy recovers, demand for housing increases and therefore when demand is strong prices will rise.
It is difficult to say when we will see significant rises in house prices, they may never come, we might have to, as a country, get used to stable growth rather than a boom economy or we could go round the merry go round and jump on the roller coaster of boom and bust economy which means the next boom in the housing market coming will be bigger than the last.
with so many opinions on the economy and the correlated housing market, you are always going to get conflicting information on prices however that facts about the economy as I have outlined in this blog remain. Look back at house price statistics going back the last 40 years and this will allow you to see the bigger picture, that is, fluctuations in prices are common but the trend of the housing market goes only one way, up!