The report shows that house prices are expected to bottom out in the first quarter of 2010 coupled with a slight improvement in mortgage approvals. However, despite credit conditions continuing to improve through 2010 and 2011, the authors predict that only very modest price increases will be seen.
Between the fourth quarter of 2009 and the fourth quarter of 2010, cebr predicts that average prices will rise by 2.0%, and a further 3.6% over the following 12 months.
Benjamin Williamson, one of the report’s authors and economist at cebr said: "The key question now is the extent to which rising unemployment and weak wage growth will lead to a second wave of house price falls, or whether this has already been built in to existing expectations.
"Our view is that the extent of house price falls already seen means further significant falls are unlikely."
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