The latest House Price Sentiment Index compiled by Knight Frank and Markit has revealed that homeowners believe property values have fallen in September, although the pace of decline is thought to be slowing. Meanwhile, growth expectations in the real estate sector reached their highest levels in more than a year, the organisations found.
Chief economist at Markit Chris Wilson explained that there are a number of factors behind the increase in positive sentiment where the housing market is concerned. He noted that the findings provide "a glimmer of light that prices may start to rise again, presumably supported by increasing signs that interest rates will stay low for longer and that more properties may come on to the market".
However, a study released by the Royal Institution of Chartered Surveyors earlier this month painted a different picture, indicating that economic uncertainty is weighing on the real estate sector. The research found that the average number of sales carried out in August fell slightly, along with a drop in the level of typical stocks recorded on surveyors' books.
- Tuesday 20 September 2011