There have been bright as well as bleak moments when hearing news from housing experts over the last six months.  Homeowners are anxious to see house prices rebounding and strength returning to the housing market.  Without it there will continue to be declines in property values and a loss of valuable equity.  Already there are millions across the UK that are drowning as their house is said to be “underwater” as it rests with negative equity.

Things are not expected to be bouncing back anytime in the near future for the UK or eurozone countries.  According to the ratings agency, Fitch, this year could see another overall fall in the average house price by 20%.  With expectations of tight mortgage lending and continued strains from a weak economy leading to a lack of consumer confidence there is little to be anticipated in the way of recovery for 2013.

Fitch reported, “The agency expects house prices to decline by an additional 13% in Italy and Portugal, 15% in Spain and Greece, and 20% in Ireland. Different from Fitch house price forecasts for most countries, the house price assumption for Ireland is a conservative estimate reflecting various downside risks in the market. It is, however, also conceivable that Irish prices stabilise sooner and at a higher level than Fitch’s base case assumption suggests.”

The experts at Fitch also pointed out that despite the lack of buyers those that are returning to the housing market will find affordable house prices.  Sellers are becoming more realistic with their asking prices in the housing market and along with low interest rates there is much to be reconsidered for buyers holding back on purchasing.