July 2010

After June`s optimism July takes a downturn.

I read a report that says that house prices are expected to fall because more people are wanting to sell than buy. This is because of the effect that the Tories are having on people`s confidence and also the abolition of HIPs is making it easier to be a seller. But surely most of those people who sell will then become buyers?

I become further worried and depressed when I see BBC programme that says that interest rates will begin to rise sooner rather than later and that we should expect rates to be around 6% as that is the norm. 6% would definetely blow us out of the water and we would probably lose both houses. This is very worrying indeed.

Some good news combined with some bad news. A large accountancy firm predicts that because of the Tory deficit plans, interest rates will need to stay at 0.5% until 2014. 0.5% will become the norm. This is great news but the report also predicts that house prices will fall by nearly 25% over the next 3 years. That would be a disaster for me and my family but I  don't see how anybody can predict such a big movement, it must be guess work.

Its official, according to the Nationwide house prices have fallen by 0.5% in July. Is this the beginning of a big slide? Should I start to panic now? Should we be thinking about selling our second property while we still can?

I am torn between trying to relax and take things as they come but risk being too complacent or constant worrying which seems to be a by-product of monitoring the situation closely.