It is greatly predicted that house prices will continue to fall well into 2010, a further 10% than figures of present. There is not be any kind of recovery until 2012.

The Council of Mortgages Lenders recently released figures showing a nearly a 50% drop in mortgage approvals at the beginning of this year compared to last year. This goes inline with decreasing mortgage options, rising umeployment, more repossessions, more bankruptcy etc, etc. First time buyers are drying up at the bottom of the property ladder and the chain above them is weakening. Yes, Halifax did their best to stimulate interest in the property market by recentl releasing headlines that houses are now affordable more than ever, “Housing affordablility has trebled since prices began falling 18 months ago”. But are the Halifax just staing the obvious?

If house prices have fallen, then why would they not become more affordable? Would it also be correct to state that house prices will be even more affordable in 18 months time?

Whatever the future holds, it would seem that house prices are due to fall even further to go inline with demand and affordability. Banks are more regulated now days and there are very few lenders out there which offer silly rates of 10 x your salary borrowing, we are now looking towards more sensible lending rates of 4 x salary borrowing…. obviously house prices must accustomize themselves to this fact.

Estate agents will no doubt yell from the roof tops on the slightest hint of positive news from the housing market, but my suggestions is to take your time and compare. What is on the market today is very much likely to be what is on the market still next month and even cheaper!