House Prices Rise - December 10, 2007

After the recent cut in interest rates house prices have gone on the rise.

Even thought the interest rates were cut by only 0.25% house prices have responded by rising. This rise will be down to the lenders being able to offer more mortgages to more people.

As I am house hunting this is bad news. House prices are already over inflated and with interest rates high it makes buying a house a bigger problem than normal. I’m unclear on how most people can afford a decent house on moderate salaries without cutting lifestyles to a complete minimum.

I’m hoping to wait on house buying until the market crashes or repossessions become common place that its easy to pick one up cheaper than normal rates.

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