Will the house prices remain flat or fall further?

Posted under Advice by Michael

Buying a property is one of the biggest decisions in one’s life. It is the time when one decides to invest his hard earned money or thinks of raising finances for owning a property. Many people confront problem of raising finances. They need to know how to arrange for monthly repayments and even paying off capital.

Timing your decision to buy property is very important, but equally difficult. Finding best price for a property is a difficult proposition. According to Halifax Building Society average price of £70,000 in 1997 has gone up to £197,000 in 2007. The increase is almost 182%. On the other hand, the prices have been relentlessly falling for last few months, and may fall further. So, timing the market is never easy!

One important development, favourable to the first time buyers is that base interest rates of Bank of England may fall further to stimulate growth in economy. The first time buyers will be thus in an advantageous position. Martin Ellis, chief economist at the Halifax, feels that the current state of the UK economy is sound hence the house prices will remain largely flat during 2008.

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