Rightmove: house price optimism on the up
A new survey by Rightmove has revealed a growing expectation that house prices will rise over the next year.
The latest Consumer Confidence Survey from Rightmove has found the highest level of house price optimism in nearly two years.
More than a third of the 40,000 home movers surveyed said they expected house prices to be higher one year from now, the highest level since the third quarter of 2010. The number of respondents expecting house prices to fall over the next 12 months was also at its lowest level, at just 20%, for seven quarters.
Mortgages hold the key
For both price optimists and pessimists, the key to their level of confidence is the mortgage market.
Those predicting house price growth pointed to an improving mortgage market (35%), with continued low interest rates also a factor (14%)
Yet those who are expecting price falls pointed to little to no improvement in mortgage availability (33%), the required high deposits (16%) and the threat of rising interest rates (15%).
Fair and reasonable prices
While a significant chunk of those surveyed expect house prices to rise over the next year, almost half (46%) still believe that current house prices are above ‘fair and reasonable’ levels.
What do you think? Will house prices rise over the next 12 months? Or are they still above ‘fair and reasonable’ levels? Let us know what you think in the comment box below.
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