Home Sales Lowest Since 1978
Dec 9th, 2008 | By admin | Category: property news
During November we saw the lowest volume of houses sold for 30 years marking the fact Britain is now in deep recession.
The squeeze on lending coupled with falling house prices, low confidence and uncertainty in the employment market is causing the lack of property sales.
Falling property prices are great for first-time buyers and investors that are able to get themselves a mortgage. But many people do not fall into this category. Many home buyers are relocating or up-sizing or down-sizing due to an unforeseen change in circumstances these consumers are potentially feeling the pain as their property is now worth less than it was last year.
It is these home owners that are pricing their houses wrongly that are holding up the market most people just can’t accept that their property is not worth as much as it used to be. Until vendors accept that they have to adjust the price of their property the market will remain stagnant.
Mortgage approvals are at the lowest they have been for almost 10 years as the failing economy caused banks to hold on to money and stop lending. This trend is likely to continue for much of 2009 as the economy is expected to continue to contract throughout the coming year.
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