23 Mar

Affordability to continue improving, says analysts

Affordability to continue improving, says analysts

House prices will continue to fall this year, making homes more affordable, a survey has predicted.

The Reuters poll of 36 experts from the financial sector expressed a consensus that there will be a 14 per cent drop in prices this year, with another four per cent to follow in 2010.

Of the forecasters, 23 said they expect it to be a year or more before prices stabilise.

David Page of Investec Securities told the news provider it is clear that buyer interest for homes is increasing in the current circumstances.

He noted: "Affordability is driving that [rise in demand] while interest rates are dramatically lower."

Last week, figures from the National Association of Estate Agents (NAEA) showed that the number of sales per average estate agent in February was up to eight, with this increase reflecting a return to the levels of 12 months before.

NAEA president Chris Brown observed that this showed higher demand is "slowly but surely translating into sales".
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