Green Shoots of Housing Market Revival?

In a market that can best be described as flat, it is hard to find anyone who is prepared to talk about a housing market recovery. All the principal sources - Halifax, Nationwide etc. - are reporting prices at a similar level to 2011 and volumes are also at 2011 levels, give or take a percentage point or two. But not everything is in the doldrums; house builders are buying land again and building more homes; architects, who are always an early indicator of a revival, are busier and even mortgage lending is showing tentative signs of improving.

Mortgage product numbers are up 7% v July, direct deals up 8%; the Funding for Lending Scheme launched on 1st Aug has stimulated lenders to broaden their ranges and to sharpen their pricing and several lenders re-entered the high LTV arena during August.

Most interesting of all, US housing market activity is picking up. The market in the US was the catalyst for all the current woes; the market and prices fell off a cliff in March 2007 which then domino-ed across the rest of the world in 2008. Hopefully the recent, positive signs will bring some much needed golden autumn sunshine to the 2013 housing market rather than being a false dawn; let's wait and see.

Kevin Hollinrake
Managing Director
Categories: Hunters News