| In May this year, according to Nationwide, house prices | | | | People buy in the Spring and slightly less so, in the |
| have gone up by 1.2% and subsequently the annual | | | | Summer so house prices are expected to go up a little |
| house price fall has gone down from 15% to 11.3%. | | | | at this time. Come Autumn and leading up to Christmas |
| This is the second time in three months. Is the tide | | | | estate agents become quiet again until the next Spring. |
| turning? | | | | By early 2010 the economy will be more stable and |
| It's still early days. The economic climate is still unstable | | | | then property prices may then be on a slow increase |
| with employment expected to continue to rise - some | | | | (and interest rates may have started to rise by then - |
| think another one million will lose their jobs before the | | | | they won't stay this low forever). As this gradually |
| end of the year. Although access to credit is beginning | | | | happens companies will begin to reemploy workers |
| to ease, it's easing slowly - in April mortgages | | | | again - but it will be slow. As more people become |
| approved edged up by 1000 and the gross lending | | | | employed, they will have more money to spend and |
| increased from £3.4bn to £3.5bn. | | | | so make more purchases, including purchases on |
| Let's take a look at supply. Stock levels are falling and | | | | houses. |
| new property onto the market is scant. Fewer new | | | | If property prices follow what happened in the 1990's |
| houses are being built and potential sellers do not want | | | | downturn, property prices are likely to bump along the |
| to put their property on the market if they are only | | | | bottom of the trough with rises and falls for a few |
| going to get a low price. Many want to hold out for a | | | | months yet. |
| year or so in the hope of achieving a better price - | | | | If you find the right property and can buy now, then |
| and a better price on a house sale is worth £1000s. | | | | buy. Or if you can't buy now, then save hard for a |
| And then there are also the sellers who have taken | | | | deposit, be in secure employment ready to get a |
| their property off the market, either to stay put or rent | | | | mortgage, or if you are self-employed make sure you |
| out until the market picks up. Supply is unlikely to pick | | | | keep up to date with your paperwork - the mortgage |
| up significantly in the months to come. Only those | | | | company will want proof of your earnings. Speak to a |
| sellers who have to sell will sell at this time, so that's | | | | mortgage broker or bank now and find out what you |
| the probate sales, repossessions (they tend to sell at | | | | are going to need in order to secure a mortgage. And |
| auction more than through estate agents), marital splits | | | | if you can, buy before early 2010. From early 2010 and |
| and relocations. | | | | as the Spring sales start to go through house prices |
| On the demand side, house prices are low, interest | | | | may then be on a slow but sustained rise. Just before |
| rates are low and mortgages are becoming easier to | | | | Christmas is usually a good time to buy - people want |
| get. There are increasingly more interested buyers out | | | | their property sale out of the way before the |
| there - people who are in safe employment want to | | | | Christmas holiday. |
| make the most of this opportunity and slowly those | | | | However, opinions vary! Analysts expected house |
| buyers will translate into sales. Or those that want to | | | | prices to fall in May and they rose. Some analysts |
| invest in property at a time when their savings are | | | | believe that house prices will be on the up by the end |
| making a poor return. They will buy up the best of | | | | of this year, others expect them to continue falling until |
| what's on offer and as the supply continues to fall or | | | | mid-2010! It's a guessing game and house prices are |
| remains flat, house prices in turn will rise. | | | | only one part of the wider UK economy and the global |
| Seasonally, this is the busiest time for estate agents. | | | | credit crunch. |