Housing market to fall

Goldman Sachs has tempered expectations of an imminent recovery in the UK housing market by forecasting a further 10pc fall in prices. In a comprehensive note on the housebuilding sector, the investment bank said it would be year before house prices found the bottom of the market in the second quarter of 2010. Shares in house builders have rallied so far in 2009 as the likes of Taylor Wimpey and Persimmon completed key refinancing packages and reported improved visitor levels and sales volumes compared to the depths of the financial crisis last Autumn. However, Goldman analysts warned that, although sales volumes could rise by 12pc next year, prices will remain under pressure because of rising unemployment and the fact that property values are still well above the historical average of affordability of 3.8 times salary.

Source : Daily Telegraph page 37 - 23.5.09.
23 May 2009

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