Housing Market - Taking Stock For 2010

If you bought a house at the beginning of this year then you're probably quietly pleased with yourself - house prices have unpredictably gone up and you probably would have secured a good mortgage rate. If you've sold your house, then no doubt, you're glad that you've sold and have moved on. If you're sold and have bought another property then at least both sale and purchase price have reduced. If you've sold and not bought then you've probably lost money - for the time being.
Sometimes you just have to sell your house be it through repossession, divorce or a job loss. It's very tough to lose your home for financial and personal reasons. Making a house your home, whether you ow it or rent it, is key to settling in a new place. But still losing money on your house is grim because it's usually thousands.
The FTSE is on the up but the economy as a whole is still dire. Economists are still fearing a double dip. Confidence has been rightly shaken by the credit crunch and before any boom and spending sprees there's going to be cuts in the public sector to curb the country's massive debt. In the private sector companies are tightening their belts to make savings and so more redundancies are likely and mid-sized to smaller companies are finding it difficult to find finance from banks. As a general rule people are wary and are keeping back reserves for a rainy day - that's already here but could be here for some time. With less spending and investment there isn't much room for growth.
So what does this mean for housing? People need to move and so there will be always be a slow market of sorts. But house prices are not expected to continue to increase. The early part of the year will probably see some seasonal price rises or could stay flat if supply increases to meet demand. But come the general election and the second half of the year, house prices are likely to fall again. And following on from there, a new government will bring uncertainty and change which will in turn leave people wanting to stay put rather than up sticks.
If you are thinking of selling do it as soon as you can after the New Year. Once you sell then either buy or, if your situation and nerve allows, consider renting until some months after the General Election. If house prices do indeed fall you will be a cash buyer, with no chain and be in a good position to make a low offer. It's a risk of course and it's always more comfortable to simply settle into your new house without thinking you'll need to be moving again. But as with everything you'll need to weigh up the pros and cons at the time - by then the situation may be clearer.
In the latter half of the year, if you can get both the financial backing and a low enough purchase price, it may be a good time to consider buying a property to rent out - providing you see it as a long term investment as there will be lots of bumps a long the way.
Good wishes for a happy 2010.

Debbie Morgan writes for Wheres My Property, the site that finds property for sale and Renovate Alerts, the site that finds property to renovate.