Buyers returning to housing market but prices grim

The Royal Institution of Chartered Surveyors (RICS) have announced the latest figures today which indicate that the seasonally adjusted price balance has fallen to -76 in January from -74 in December which is a further indication that the market is still in a very depressed state.

House prices in the period have fallen at a faster rate in January than in December and that prices are still murky as the number of completed deals that have gone through have similarly fallen.

However a unique combination of rapidly falling house prices, coupled with low interest rates, means that there is still a great attraction for potential buyers, especially for those now ready to make the jump onto the property ladder.

This does mean that estate agents are now selling less houses than ever before at an increasingly lower price.

RICS has revealed that there has been greater optimism in both London and the south east of England as surveyors reveal expectations that sales are likely to rise by between 18 and 38 percent. However, house prices are expected to continue to decline over the short-term.

The increase in interest at estate agents has yet to translate to eager buyers willing to stump up deposits and make use of their bargaining powers, according to the RICS spokesperson, Jeremy Leaf, today.

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