David Bexon, Chief Executive of SmartNewHomes.com, said: “The latest (May) report from Hometrack forecasts continuing stagnation for the next few months and reports that house prices have dipped by 0.1% over the month. However we are more upbeat about the market’s prospects than Hometrack seem to be and believe that, following several months of decline, the housing market has reached a turning point. Latest figures from www.smartnewhomes.com reveal that buyers are already returning to the market, effectively bringing the slowdown to a halt, and we now expect to see positive growth returning in the next few months.
“Nationwide have readjusted their predictions for the housing market this year to a 0 to 2% rise and we would expect the increase to be at the top end of this range, with a decrease in interest rates accelerating growth yet further. Despite nine months of unchanged rates, the housing market is still suffering the hangover of four rises last year and, with consumer spending falling yet further this month, talk has turned to the need for rates to be brought back down. This would provide a timely boost to the property sector by encouraging cautious buyers and sellers to return to the market.”
