Mixed Signals Again From The Housing Market
After the recent announcement from Bovis Homes that they were cutting back on the number of homes they planned to sell over the next 12 months, many believed this was a signal that the property market had peaked. However, Barratt Developments have today announced that they see plenty more life in the housing market, and are seeing no real signs of a downturn. How can this be?
Historically, Barratt Developments have always been very strong in the North of England, with Bovis and the other prominent house builders more situated in the South of the country. It appears this may well be the stereo-typical North / South divide, with the South of the country feeling the pinch before the North, as they felt the benefits before many other areas of the country. It will be interesting to see how the other house builders react, as today’s news has been somewhat of a surprise to many.
However, even if the general trend is one of hope in the short to medium term, the fact that even one of the main players in the sector is feeling the pinch is a sign of some kind. Other news announced today showed that while property prices were still rising, they are currently rising at the lowest level for 18 months.
Despite the onset of higher interest rates, with more rises expected in the short term, the property market is putting up a great fight to stay positive. How long this will last remain to be seen
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