Sunday, March 15, 2009
David Smith fights back
It can be a good sign that you are approaching some sort of turning point when forecasts start to look bonkers. City firm Numis claimed this week that house prices could drop by another 55%. Hyperbole grabs headlines. I have to say I find it unconvincing. Even at current prices, interest in the market is increasing. RICS says numbers of new buyer inquiries rose in February for the fourth month in a row. At the same time, surveyors are reporting an upsurge in valuations as potential sellers look to put their homes on the market. Many decide not to proceed, though; as a result, many estate agents have a shortage of properties to sell. Buyers are keener, but face significant financial constraints. Sellers do not want to sell in a weak market. Spring is here, but it doesn’t yet feel like it.