Sunday 27 November 2022

Housing market will slow down again next year: ABN Amro economists

house for saleMore homes will change hands this year but sales will slow down in 2018, according to ABN Amro economists.

This year, there will be a 5% increase in the number of house sales, compared with 20% in 2016. But by 2018, growth will slow and prices will stabilise, the economists say.

Next year’s downturn will be due to fewer first time buyers taking the plunge because of tougher mortgage rules and a shortage of suitable homes. In addition, too few houses are being built, which is contributing to the rise in prices.

The bank also expects mortgage interest rates will start to rise.

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