Bottom of housing market slide not yet in sight: ABN Amro
Thursday 26 July 2012
The slide in house prices is set to continue for some time to come with ABN Amro economists forecasting an 8% drop next year, the Volkskrant said on Thursday.
The number of homes changing hands is also set to fall by 14% next year, the ABN Amro economists said.
Three months ago, the bank was more positive, forecasting a 3% drop in sales in 2013. Since then, however, the threat of a long recession has intensified and spending power has shrunk, making people less interested in moving house.
This year, ABN Amro and the NVM estate agents organisation are both forecasting a 5% fall in house prices.
An added problem facing the market is the uncertaintly surrounding mortgage tax relief. Most parties have included restrictions in their manifestos for the September general election.
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