This week the papers are full of conflicting stories. On the one hand, house prices and mortgage lending for the month of July are showing great promise with a 19 per cent increase of mortgage lending compared to last year and the monthly surveys from the Nationwide and the Halifax showing price rises on the incline over the last few months as sales increase and more mortgages are approved.
On the other hand, the economy group Ernst & Young’s ITEM group declare that this is just a false dawn. The group has forecast a price fall in early 2010 that will take three years to increase back to the levels of 2007.
Which prediction the public chooses to believe is possibly likely to cause it to self-fulfil its prophecy. As it often the case, and certainly in the case of house prices, a product is worth what people will pay for it. The general public want to own their own home and many already do so there is a demand for mortgages but if we become wary then house prices naturally stagnate. Perhaps the answer to this question lies in how much publicity each opinion garners. With that in mind, judging by the headlines, it might be possible to predict which will win or maybe we will rebel against one or the other.
Luckily, the mortgage market is general is pretty recession proof as even when we do not move home, there is always a demand for remortgages and mortgage advice to make sure we get the best mortgage deal out there, and that’s good news for those taking CeMAP training.