The UK market has been much weaker than here in Toronto. But according to the UK Nationwide House Price Index, prices rose for the second time in three months. May marked the largest one month increase since 2006 at 1.2%. At the same time, the backlog of unsold houses is dropping and the sale-to-list ratio is increasing. Also the number of new mortgages in May was the second highest in over a year – a result of record low interest rates.
The biggest issue in the Toronto Condo Market is not whether we are in an upturn but whether this strong upturn can be maintained, or is it just a ‘false upturn’ and just the middle of the ‘W’ as market bears claim. This will be discussed in a further blog. But any comments from readers?
With the worst of the decline behind us, potential buyers are now out in far greater numbers than in previous months, believing we are very close to the bottom of the market.The number of viewings scheduled this month equals that of a year ago and the number of offers is actually above last year’s level.
Right on! The UK market is bottoming and will start the recovery process by early 2010.