House Prices Up is misleading Wednesday, 18th February 2009

Due to misplaced optimism and a shortage of property among those marketing their properties property prices have shown a sudden increase.

This lack has prompted sellers and agents to become more aggressive by raising asking prices, despite predictions that house prices have a further 10 per cent to fall.

A shortage of property leads some agents to suggest a more optimistic initial asking price, influencing a seller to give the most bullish estate agent the instruction to sell. This is a traditional tactic employed at the start of every year to attract fresh stock, but is a shortsighted move for both parties in a falling market.

However, many keen buyers are not able to take advantage of lower prices because of a lack of mortgage finance.