Tuesday, May 27, 2008
Rental market crashing as well
Fool.co.uk: Rental market bounces back
The housing market is collapsing. OK, perhaps that's a rather sensational statement, but nevertheless, I think there's more than a grain of truth in it.
Buyers are finding it increasingly difficult to finance property purchases or are holding back for fear of buying in a falling market. Meanwhile sellers are struggling to achieve their asking prices.
Indeed, according to figures from Hometrack's National Housing Survey last month, sales are going through at just 93% of the asking price on average. And property sales are taking around 50% longer to complete than they were 12 months ago.
Posted by housebear @ 02:30 PM (596 views) Add Comment
6 Comments
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1. housebear said...
This artical is worth reading just for the coments at the end of the artical.
Seems there are still one or two propetry bulls out there. Hahahaha!
2. icarus said...
Is the "purple patch" for rental yields due to increased rents or to decreased residential prices?
3. letthemfall said...
Good for landlords or letting agents? If, as the article implies, the increase in rentals is because sellers are letting instead - because they can't sell for some notional amount - then it is not a resurgence in BTL. This kind of activity will help keep rents from rising, while prices are still gradually subsiding. These letters may come to regret holding on to a depreciating asset, even if they can afford to tie up the capital.
4. happyrenter said...
I'm seeing quite a few properties for rent at prices aimed at covering mortgages rather than realistic compared to other properties.
They're easier to spot - they're often up for sale as well....
5. it_is_going_with_a_bang said...
When people get angry about being right you know they are worried. LOL.
6. Wonderpup said...
It seems really bizzare that on a site dedicated to finacial issues those writing the articles cannot see the elementry contradiction in claiming that an increasing supply will elevate prices. Is not this same 'supply and demand' argument trotted out to support the idea that house prices cannot fall? And often by the same people!