Time For a House Price Recovery?

It used to be that anyone planning to purchaseper cent in May. The typical home is now 11.3 per
property was advised to consider three importantcent cheaper than it was a year ago, but this figure
factors: location, location, location. However, thestood at 15 per cent last month.
emphasis of late has switched more to theNationwide chief economist Martin Gahbauer noted
importance of timing, timing, timing.that this is "further evidence" that the housing
Falling house prices have been met with speculationmarket is improving, although he was quick to point
over when exactly the bottom of the market will beout that the statistics should be taken with a pinch
reached - as buyers obviously hope to make a moveof salt.
when property is as cheap as possible."Although the short-term trend in house prices has
Of course, no-one can truly be sure that a low pointclearly improved from where it was at the beginning
has been seen until after the fact, but commentatorsof the year, it is still too early to say that the market
will seek to predict it nonetheless. Peter O'Donovan,is turning definitively. During the downturn of the
head of mortgages at Bestinvest, suggested thisearly 1990s, there were many months during which
week that low levels of lending appear to beprices rose, only to fall back down again in
indicating the trough is approaching.subsequent periods," he said.
The British Bankers' Association revealed that theSimilarly, the National Association of Estate Agents
value of mortgages provided by UK banks stood athas argued that it is "too early" to talk of a recovery.
£2.7 million last month - the smallest amountHowever, chief executive of the organization Peter
that has been lent in eight years. But those planningBolton King said that its own figures do show activity
to compare mortgages may be interested to noteto be rising, with both the number of people looking
that the actual number of deals approved rose by 3.8for property and the number of sales going through
per cent in April. This, Mr O'Donovan stated, couldincreasing.
well be the "green shoot" that signifies the start of aAs a result, it may be that prices are indeed set to
recovery.stabilize and those looking for the best mortgages
His comments were followed by Nationwide figuresbefore making a purchase could do well to pay close
showing that house prices have actually risen by 1.2attention to any developments in the near future.