Housing market could dip again, expert suggests

House buyers unable to secure cheap mortgages could be part of the reason for a future dip in the housing market.

This is according to Kate Barker, policymaker and housing market expert at the Bank of England, who said she has been surprised at how the market has bounced back following the recession, Reuters reports.

According to the news provider, she told lawmakers that levels of mortgage availability are unlikely to return to pre-recession levels.

"I was rather surprised by the strength of prices in the housing market through last year and it's possible some people delayed decisions to move or put houses on the market," she explained.

"In some sense that can't continue."

The housing market has retraced nearly half of the drop it experienced in the period between August 2007 and April 2009, meaning that a relatively large number of people are securing cheap mortgages.

Earlier this month, the government's latest house price survey revealed that house prices rose by 2.9 per cent during 2009.

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2010-02-23 14:06:29 © Moneyextra.com