Are We Set For a House Price Fall?

As the headlines begin to lose faith in the future outlook of the property market, Managing Director Mark takes a look at the figures we've seen and question whether we are indeed set for a house price fall. 

Has the property market finally hit the wall or can we expect to see further price rises in the property market? Mark discusses all of this in this months market update!

Manning Stainton

As we continue into the second half of the year, the news headlines surrounding the property market are beginning to shift. The front pages which were, not so long ago, focused on stories surrounding rising prices and a property boom of epic proportions. Now we find ourselves surrounded by headlines of buyers racing to sell up and house price rises coming to an end. But are the media outlets to be believed, is the property market heading into trouble or are we set to see prices continue to rise? 

The Rightmove asking price index shows for the month of June a more modest 0.3% growth in prices. Our own figures support this with our stats showing a 0.5% shift upwards in the price of property sold across Manning Stainton. So, price growth is indeed slowing but there is still growth nonetheless and fundamentally whatever the news headlines might say, barring a significant black swan type event outside of our control the market is not yet ready for prices to fall. 

Some might question this. The views of the over optimistic estate agent; But with a supply of property that still remains constrained and an excess of buyers for each good property that comes to market whilst price growth might slow we just aren’t in a place where prices are going to fall. Interest rates whilst increasing, still remain relatively low and bricks and mortar is being seen as a solid investment, as landlords continue to buy up what they can with returns far greater than what you would get in the bank, further fuelling demand in the market.

As for our predictions for the months ahead, the summer will be a challenge with so many likely to take their first proper opportunity for years to get some time away. But the market will remain resolute for now. Prices will keep nudging up, but we are not going to see the same level of growth we have seen over the last year or so. 

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