Musings of a London Property Search Agent

After a rather depressing budget yesterday - this morning everyone has an opinion on whether or not the Chancellor is right to predict an end to the recession by the end of the year.  With the news that GDP is forecast to drop by 3.5% the Chancellor is essentially saying that the position at the end of 2009 could be so bad that the only way is up.  It’s hard to see how this will affect property prices.

Some pundits have already predicted an almighty bounce in 2010, with a similar Spring property market to that of 2007, when Property Search Agents had to get buyers in prior to properties being marketed to have a chance of securing them.

Given the preponderance of relatively high asking prices which we discussed on April 20th, see link below, I suspect that although there will inevitably be a flood of buyers to the market, as people realise they have waited too long, any bounce will very much depend on what has happened to pricing in the interim.  So those areas where asking prices are still relatively high or have jumped in comparison with 2007 and sales are going through, will fare much better than areas where there are many vendors keen to sell who have brought prices for the area down overall.  What will be interesting to see, is how fast prices in these areas jump back.  This London property search Agent will keep you informed.

http://www.manseandgarretproperty.com/property/market-news/asking-prices-up-33-in-kensington-and-chelsea

Technorati Tags: affect of recession on house prices, GDP, London property, London Property Search Agents, recession

Tags: affect of recession on house prices, GDP, London property, London Property Search Agents, recession