Buyers remain optimistic and sellers happy
Confidence amongst househunters remains high in the run up to Christmas as homes buyers and sellers expect house prices to rise by 5.40% over the next 12 months.
It's a sellers market The housing market is currently a sellers’ market as demand far outweighs supply. While they hold the upper hand, sellers are less likely to compromise on the asking price. Currently sellers are only willing to offer, on average, a discount of 3.53% on the asking price (compared to 5.75% back in December 2005).
87% of home buyers and sellers believe property prices will continue to increase according to the latest figures. Over the next 12 months they expect prices to rise by an average of 5.40%. This is up significantly from last December when the housing market was recovering from a slow 2005 and only 57% of respondents thought that house prices would rise by an average of just 1.24%. Warren Bright, chief executive of propertyfinder.com said:
“2006 was a strong year for the housing market with house prices rising close to 9%. Confidence was high throughout the year with buyers and sellers on average expected house prices to rise by 4.45% and 4.32% respectively.
“Last year, home buyers were unprepared for the strength of house prices to come. Entering 2007, overall confidence in the housing market will be strong, although outside London and the South East optimism is more subdued. We expect house prices to continue to rise on average 5.40% by year end.”
