Despite the doom and gloom predicted for the housing market, we are pleased to see them all proved wrong! For another month (December), house prices increased by 1.5%, according to the survey by Nationwide Building Society. This makes an annual price rise of 15%.
The best house price growth apparently came from the north of England and then Wales with an average house price growing to £135,000. This is an increase on last year of just short of £20,000.
There has also been much doom and gloom spouted about house prices in London falling. However, according to Nationwide, a general rise of up to 7% has been seen. The only places for price falls were apparently Surrey and certain parts of Devon. Falls of around 10% have been seen.
Our View
As long as house prices remain steady, there will be nothing for people to worry about during 2004. However, keeping an eye on the market trends will benefit anyone looking to either buy or sell.
If the widespread panic of interest rate rises, falling consumer spending and house price falls is to be believed, we will all be affected. Our advice is to take advice and always know the consequences of changes to the economy on your pocket.
Do not believe everything you see on the news or read in the papers – no one can predict the economy. But, do listen to it and make your own informed decisions.