House Prices Down 28%, but is this the bottom of the market?

UK property prices will have fallen by 28% from their peak before the market downturn ends, the Centre for Economics and Business Research (CEBR) has said. The economists’ group predicted prices would reach their trough early next year, but said there was little chance of real price growth until 2013. Prices peaked in the third quarter of 2007 and have slid sharply since then.

Average prices would rise to £170,000 by the end of 2013, from a predicted £144,000 at the end of 2009, it said. The CEBR added that improved conditions in the housing market suggested that property prices only had about a further 8% left to fall.

This article perhaps indicates that we are approaching the bottom of the property market, and that things are going to start picking up very shortly. We have heard similar stories from estate agents and property consultants recently, as they are seeing 1st time buyers back in again through the door, and trying to pick up a bargain.

We have also heard it said that the fact that the extra homes it has been claimed we need over the next 10-15 years have not been built as a result of the downturn, and as soon as purchasers get a whiff of the potential shortage we will see a sharp upturn in the property market, which will fuel the legal jobs market again with commercial property, corporate finance, conveyancing, wills & probate and related work all picking up speed again.

Is this far fetched? You can comment on the article below…

Jonathan Fagan,