Following headline grabbing price falls during 2008, the housing market at this time last year looked set for another 12 months of much the same. In fact, virtually all market commentators were in agreement that house prices would fall further during 2009. The reality however has been somewhat different as the underestimated resilience of the housing market resulted in substantial increases.
Once again we’re at that point when anyone who is anyone from the financial and housing market sectors make their predictions for the coming year. But based on last year’s performance should we even listen? Let’s face it, if you had invested in property early in the year you would not only have been able to drive a great deal but based on averages you would have benefited from capital growth amounting to many thousands of pounds. Not bad for a recession.
I have always believed in the long term strength and resilience of the housing market and 2009 simply re-enforced my views. Many people took the plunge and invested in property during 2009 and they will be handsomely rewarded.
So what will 2010 bring? No one knows for sure but I certainly wouldn’t let uncertainty drive you away from investment. House prices are low (potentially as low as they will ever be), economic growth has probably already returned to the UK and the banking sector continues to stabilise. A window of opportunity is open right now but for how long? My advice is to invest right now and the market will reward you in time. Here’s to a prosperous 2010.
