4
Aug
House prices 'may have hit floor already'
Predictions of more house prices falls may be overblown because the
market could have already hit its floor, an estate agent has
suggested.
Simon Agace, chief executive of Winkworth, told Citywire that a
combination of low prices and reductions negotiated by buyers had
led to prices coming down by 15 to 20 per cent and sometimes more
in some areas.
He stated: "The transactional level may have just about reached the
bottom, so things could soon be on the up."
The current situation may be like that of the 1970s during the oil
crisis, which was followed by a recovery led by wealthy foreign
buyers.
However, if house prices do fall this will be a good thing, Capital
Economics managing director Roger Bootle has told the Daily
Telegraph.
He argued that homes have been overpriced and such a trend will be
good news in terms of affordability.
