House prices are bouncing around on or near the bottom.
Why; • low interest rates for bank accounts, (no use keeping your money there) • rental prices are providing respectable returns compared to bank interest rates • vendors have becoming more realistic about what their property is really worth • pent-up buying tension, buyers have been contained for some time now • buying a home is the best form of forced saving, in my opinion • everyone needs a roof over their head
These reasons are more so for cash buyers than mortgage buyers, but everyone needs somewhere to live. Location is very important as always. I will leave immigration out as a reason but it does have an impact. Equities do seem cheap at the moment but the risk factor is still very high.
