The United Kingdom is looking at a ripple dip in recession with most economic sectors reporting slow or no growth, only the commercial construction business is showing any activity. Home prices remained torpid in 2012, with little or no changes.
However, the condition has been improving for the country in the past few months. A latest survey by listing agency, Rightmove, revealed prices of homes shot up significantly as more number of new sellers joined the real estate market.
Asking prices on the website went up 0.2 percent in the initial weeks of January 2013. The percentage increase was 2.4 percent higher than what it was a year earlier, reports The Wall Street Journal.
Home prices rose in January after witnessing a 2.6 and 3.3 percent drop in November and December 2012, respectively, reports RTT News.
According to the survey, it was also observed that the number of new sellers who advertised their properties or wanted to sell off estates rose by 22 percent. The new sellers either listed homes for higher prices or listed them to match the prices of homes listed in December, reports Fox Business.
"Those coming to market this month have taken a pragmatic pricing approach and kept their asking prices pretty much the same as sellers in December. While the number of sellers financially fit enough to come to market is still well down on pre-credit crunch levels, there appears to be an increased willingness among those that can to give it a go." Miles Shipside, director of Rightmove, told The Wall Street Journal.
Home prices were already on the ascent this year with prices in London witnessing a 3.6 percent hike. On the whole prices in the city rose 9.7 percent annually, reports RTT News.
The Rightmove Survey concluded that both home prices and sales are expected to rise in the coming few months as sellers display more confidence notching up prices and banks extend flexible mortgage rates, helping new investors with required financial assistance, reports IB Times.
"A further sign of market recovery is when investors look to property to achieve good returns. The majority of professional property investors appear to have spotted that now is the time to increase their investment, and they are obviously confident that prices are not going to get cheaper," Shipside told IB Times.
If the housing markets of the country revive, economic sustainability is assured as a major part of the country's wealth comes from its real estate sector.
