Analysts have commented that, after the slowdown of 2005, 2006 would be a growing year in market activity and house prices. Research done reveals that the number of houses bought and sold is set to rise next year. This is so because optimism is growing and the prices are set to rise again in the year 2006. Jim Buckle an analyst said that house-hunter confidence is on the up and even though they don’t anticipate the prices to go up, there isn’t doubt that people are not afraid to move.

Researchers have shown that 60 per cent of the public expect property prices to soar up in a year. This could be up from 24 per cent last year.  Researchers quipped that the hike in the people looking for homes adds credence to their forecast of more transcations for the new year. They said that more buyers means more sales.

Linden Homes predicted a two per cent hike in property prices in 2006. This would be instigated by the pent-up demand generated when buyers held back, waiting for a crash. People are coming back to the market, as it has become clear that this would not happen. Philip Davies, the chief executive said that he isn’t expecting any surprises from the housing market in 2006. He added that the current level of activity is going to continue, with a slight drop of price expectations among the vendors underpinning a flow of transactions into the spring. He commented that he expects to see the sold signs shooting up with the daffodils as vendors come out with more realistically priced homes.