Categorized | International

London Housing Prices Nearly Hit Record High

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The London residential real estate market defied the worries of economists in hitting a near record high in the month of February. Prices jumped nearly two and a half percent to almost four hundred and fifty thousand pounds, or seven hundred and ten thousand dollars.

 

Prices in all of England and Wales increased by more than four percent this month as well. That increase is the biggest in nearly ten years. While economists had originally feared that the London housing market would start to struggle due to fears related to the European debt crisis, the latest numbers certainly squash any doubts that the market is still performing strong. In fact, overall confidence in the housing market is incredibly strong in the city, and prices will likely continue to rise.

 

The lack of supply in London’s housing market is certainly contributing to the price growth. In addition, there has been an increase in retail sales, and the economy as a whole looks likely to avoid a second recession. With the positive economic news, the residential real estate market will only continue to improve.

 

New listings in London’s residential real estate market fell by nine percent in January, The decline in listings is indicative of a seller’s market, as there is a shortage of housing options from which a buyer can choose.

 

While unemployment numbers are still relatively high, there has been growth in the manufacturing industry. As such, more jobs will be created, uplifting the economy even further. Provided the economy continues its growth, prices in the residential real estate market will continue to rise in 2012.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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