|
It predicts prices will fall by 1.6per cent in the first half of 2010, despite forecasting a 2.8 per cent rise in prices over the second half of this year.
The reason behind the double dip, according to ITEM, is that a shortage of homes for sale has driven prices up and that once those buyers with access to big deposits dry up, there will be nothing left to support growth.
“A small number of cash-rich buyers have supported prices, but the supply of these funds is limited, which means prices are likely to dip again in the first half of next year,” said Hetal Mehta, advisor to ITEM.
ITEM says that overall in 2009, house prices are likely to fall by 11.4per cent, based on the Communities and Local Government measure. That is in stark contrast to Nationwide’s expectation that prices will rise up to 5per cent this year, following a 16per cent fall in 2008.
--
ukmike8
|
