There are definite signs in the housing market but some measures are picking up. Is it too early to call upon in the housing market? This is always a difficult call to make because house prices are local, although they are linked in general to a nationwide trend which clearly is still on a downward trajectory.
In this recession, UK is about 15 months behind the US and so we should look to the US to see what we can expect from the future.
1. Realise that house prices move in a cyclical way. The peak to trough cycles are normally between 18 an 25 years. The easiest way to make money in house prices is to buy after a crash in the couple of years that house prices traditionally trundle along the bottom. The illiquid nature of property means that it can be no other way. There has never been a crash in history where house prices had a V shaped correction. Every correction in history has been U shaped.
2. Understand the anchors which limit house price growth. If you understand how a house should be priced fairly, you will have a huge advantage over the rest of the speculative and residential market in buying at the right time.
3. In property, we have often been told about location, location, location. Where you buy the property will determine to a large degree how much money you make on it in the future.