Prices have stabilized in the last 3 months. Good properties are continuing to come to the market and are selling well. There is however generally seen to be an oversupply of some house types and this is tending to result in some houses selling at less than asking prices. Inflation continues to be a concern for the overall economy although the pressure on interest rates seems to be reducing. Mortgage funds are available and an increasing number of borrowers are moving to variable rate terms.
Mortgage arrears figures are improving and a reducing number of properties have been repossessed. This reduction in distress sales is seen as helpful for the whole property market. It is probably unlikely that there will be any further improvement in the market this year. Commentators are becoming more confident however that we are not heading into a further fall in prices and that the recent reported declines (0.9% fall in August – Nationwide) are likely to remain modest.Posted 08/09/2010