Housing market prices rise surprisingly fast
February 20, 2012 Leave a comment
This February, housing prices in the UK have risen by 4.1%, which is the highest monthly rise in 10 years. This increase comes as a big surprise given the unstable economy and political trouble. In January, prices still fell by 0.8%. Experts claim the recent rise is due to strong demand from cash-rich market sectors where demand exceeds offer.
London is one of these cash-rich market sectors. Its property market cannot supply the demand for flats and houses asked by wealthy buyers. Foreign investors represent an important part of that demand which results in higher prices. London prices are now only one percent off their all-time high.
Whereas sellers are particularly powerful in the above mentioned market segments if they dispose of the right property in the right place, there is also general evidence of increasing confidence in the housing market. After four years of constant economic instability, consumers seem to have accepted this situation as the new norm. They do not want to postpone their purchases anymore, assuming they have regained power over sellers who are often desperately looking to make money out of their owned property.
Image : flickr / ell brown