Cantor Spreadfair, the betting exchange, says punters are predicting a stronger housing market.
Despite the ongoing liquidity crisis in the UK starting to have a knock-on impact on the housing market, Cantor’s clients are bullish about future house prices.
Betters currently predict that the average house price will be £187,000 nine months down the line in December 2008, which is £6,000 up on what they predicted two months ago.
Spreadfair says that on September 15 2007 – one day after the run on Northern Rock – it saw the anticipated average house price drop to £185,000, before witnessing a further record low of £180,000 in December 2007.
But predictions have recovered ever since and despite industry bodies reporting declines in house prices, Spreadfair hasn’t seen the signs from their clients that we are on the brink of another housing crash.
Nick Sproule, head of key accounts at Spreadfair, says: “We have seen significant interest from clients who would like to bet on where house prices are going to be in a year, two and even three years time.
“Interestingly, we are seeing a number of clients who made money during the during the property boom over the last few years, re-entering the market. Their view is it is over sold. Others are more bearish and are waiting for the credit crunch to feed its way into prices.”