Housing market confidence still high
Consumer confidence in the housing market has remained high despite a series of crises in the current credit crunch period, according to Nationwide.
This will come as good news to homeowners still paying a mortgage, with a loss of confidence representing a potential catalyst for a market crash, which would make it difficult to recover payments through sale.
Nationwide chief economist Fionnuala Earley said: “Consumers [are] still very happy about the prospects in the labour market and for household finances.”
“We will see some weakening in confidence as the economy begins to slow, although some of the effect may be offset by the cuts in the base rate we expect in 2008,” she added.
However, research conducted by the lender did reveal that only 14 per cent felt it was a good time to invest in a house or car, compared to 33 per cent in November 2005.
The research revealed that consumer confidence fell only one point in last month to 98 compared to October 2006
.
