According to Nationwide's monthly house price index, house prices across the nation are still on the up. Despite the increase slowing down, they were still up by 1.1% in August this year.
Actual sales have also picked up from the slight slump in June and early July this year. If you look at the increase in gold prices over the last 3 years, house prices have more than doubled it!
Also, since the start of this year, the average house price in the UK has grown to £129,258. This is an increase of almost 9% over as many months.
Our View:
House prices are continuing to rise steadily and the predictions for a fallback from the market analysts are still yet to materialise. However, there have been definite signs of stock market recoveries, especially in the US and this has lead to many changes of opinions.
Where some commentators were predicting interest rates to remain static for the rest of 2003 and into 2004, many are now speculating for a 1% rise by this time next year.
We firmly believe that the right property investment is sound for the future. However, with prices being so high, first time buyers are stretching themselves to just get on the ladder. If prices continue to rise and first time buyers continue to stretch, it does not bode well for potential repossessions.
Learn more about mortgages and property in Mortgage Crazy.com.