NOW could be a good time to sell, according to a report that predicts more doom and gloom for the housing market.
Capital Economics believe that property prices will fall by a quarter over the next two years. They expect them to drop 5% this year, 10% in 2011 and in 2012.
They base their calculations on the house price-to-earnings ratio, which is 5.5%, still way above its 4% long-run average, and the fact that mortgage rates will rise.
Meanwhile, PriceWaterhouse Coopers say there is a 70% chance that UK house prices will still be below peak 2007 levels in 2015 in real terms, despite a continued expected recovery in cash terms.
The good news is that most commentators believe house prices will be stagnant for the latter half of this year, while increasing slowly in 2011.
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