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Housing stocks booming

20 September 2004
It would appear that while property prices fall, stocks in housing are rising.

The Share Centre's 'Housing Shares Index', which examines how the FTSE views prospects for the housing sector, shows that the stock market sector doesn not share the general pessimism surrounding the housing market.

Overall the index reveals that the market has risen by 1163.25 over a twelve month period and is up by 559.5 over the last three months.

Whilst mortgage lenders and estate agents have been hit by falling prices, house builders are strong.

Reasons for this include a current housing shortage in the UK, and intense action to meet the growing demand. The long-term view in the money markets is that rates are coming down, so as a result better-priced mortgages should be on the way.

The market appears to believe demand for housing over the next two years will be strong and some feel that mortgage deals will get more attractive as rates start to come down next year.

Figures over the last three months have shown that house builders have continued to perform well with Berkley Group, Persimmon and McCarthy & Stone exhibiting the biggest gain, whilst other areas of business associated with the housing market have under-performed.
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