Smethwick Property Prices to increase in 2013

After years of stagnation the housing market will surge ahead in 2013 according to the Office for  Budget Responsibility.

The suggestion is that there'll be a 20% rise in conveyancing transactions in 2013. Allied with price rises of upto 4.5% in 2015-16.

This forecast has formed part of the Chancellors Autumn Statement. 

The current state of the market has been put down to cautious lenders, anxieties about jobs and sellers unwilling to reduce their asking prices.

So far this year property transactions are down 5% on 2010.

The suggestion is that, according HMRC, 1,000 extra homes were sold in October than September of 2012. Sadly that's still 3,000 fewer than in October a year ago. 

The OBR predicts that house transactions would fall by 3% in 2011-12, grow by 1.5% in 2013 and then surge ahead by 20.7% in 2013-14.

The statistics suggest that property prices will dip very slightly but rise by 2.7% in 2013-14 and then bounce along at 4% pa in each of the next 3 years.

If you'd like to discuss how these numbers might affect yourself please contact our Smethwick office. The long term forecast seems positive.

Ferdinand Kelly

Property Solicitors

Smethwick & West Midlandsmain story