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Category: Mortgages Date: 7/26/2010
Three-quarters of people still believe that house prices will either be the same or higher in 12 months' time.
Against the backdrop of July's fall in house prices, these figures from Rightmove suggest that there is still much confidence in the housing market.
However, falling house prices did have an effect on confidence levels, with the percentage of people believing house prices will go up by July 2011 down from 50% (in the three months to end April) to 41% this quarter.
In the previous quarter, 83% believed house prices would stay the same or go up, compared to the 75% this quarter.
"A 9% drop in people expecting prices to be higher in a years' time is a significant shift," commented Miles Shipside, commercial director of Rightmove.
"However, three-quarters of people still believe that prices will either be the same or higher in 12 months' time, indicating expectations of price stability in the medium-term.
"This suggests that there is a strong sense that the property market's 'dark days' are behind us."
One in five (20%) of the 20,000 people surveyed believe prices will fall over the next year, an increase from one in eight (12%) last quarter.
"The 'price-optimists' still out-number the 'price-nervy' by two to one, but with the Government's austerity measures starting to bite, a growing nervousness is to be expected," added Mr Shipside.
"Given that house prices are anticipated to fall in the second half of 2010, it is reassuring that a bullish 75% believe that house prices will recover to be the same or higher by the summer of 2011.
"This is largely dependent on the return of mortgage availability which, unfortunately for frustrated would-be home movers, may prove to be a longer game than they anticipate."
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