Uncertainty in the House Sales UK Market: Are values rising or dropping? Is uncertainty for once good for the housing market?
According to the Nationwide Building Society House Sales UK Prices declined an extra 1.3 per cent in January. However, according to Halifax, part of the HBOS group, House prices increased 1.9 per cent in the corresponding period. So, who is accurate, and what does this suggest to Home Buyers across the country? More significantly, every home owner in Britain will now be urgently looking for confirmation of one or the other of these exceedingly different stories.
the majority of people will be attempting to work out, firstly who’s accurate, and secondly “what does this mean if I want to Sell My House. Are there now individuals out there who are genuinely prepared to Buy my house for a realistic price?”
It looks that the common consensus amongst the so-called experts as well as amongst the general community is that the Halifax declaration is just too good to be true. The man in the street is left thinking “I’m not sensing a queue of potential Home Buyers lining up to compete to Buy my house, so I’m not sure”. Can it possibly be that this downturn is overcome just as abruptly and rapidly as it started?
Regardless of the reality of the existing situation. This up to date combination of news must be a signal that the tendencies are beginning to vary. We no longer have all the signals pointing unanimously in a negative direction. For the first time in fifteen months there’s ambiguity about whether prices are growing or decreasing.
A large amount of market pricing is decided by sentiment or belief. Not long ago, all the cards were stacked in the Home Buyers favour. He was so confident that house values were decreasing, that he could confidently make a low offer, knowing that if the seller hesitated about accepting it, the continuing fall in values would only play in the Home Buyers favour, as the passage of time would bring prices down even further.
Now, there is ambiguity in the market, and though it’s correct to say that markets don’t normally like ambiguity at all, in the existing extraordinary situation, ambiguity may well just help to push us round the corner. Think about it for a second. Now, the Home Buyers who make a low offer can’t be confident that time is on their side anymore. The man who was only a few days ago urgently trying to “Sell My House at almost any price” now finds that time just might be on his side. Nobody can say with certainty whether time will help the Home Buyers or the sellers. Nevertheless, for the first time in well over a year the balance of power has altered to a small extent back towards the seller. Nevertheless, slight that change may be, it can only have a encouraging effect on house prices.
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