Homeowners hoping for a big rebound of their equity levels to secure the very best remortgage rate levels will have to wait past 2013 according to a new report.  Halifax released their expectations for the coming year and they expect the year to have flat house prices.  Without house prices rebounding then property values will remain flat as well.  This may be hard news for those homeowners with negative equity levels hoping for some help from rising property values.  It is expected that the house prices in the market will fluctuate between a 2% decline or rise throughout the next year and end with prices much where they are today.

Halifax reported an 1.0% rise in house prices in November but a year to year comparison for the same month revealed a decline of 1.3%.

The lack of demand in the housing market especially from first time buyers is blamed on many factors such as lack of consumer confidence in the economy, stagnant wage growth and inability to save for a deposit.

Martin Ellis, housing economist with Halifax said, “We expect continuing broad stability in house prices nationally in 2013.  Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any genuine direction."

“Conditions will remain tough for first-time buyers with no radical change in their circumstances expected. As a result, the numbers of first-time buyers are likely to remain low by historical standards.”

Current mortgage and remortgage offerings from lenders are very attractive and many lenders are competitive for borrowers.  If it has been awhile since a hopeful home buyer or remortgage seeking homeowner has inquired for a loan, experts suggest they revisit the consideration with the changes in lending and lower interest rates now available.