Monday, Aug 18, 2008
Housing prices are falling, and first-time buyers can't get credit. Sound familiar?
SOTT Assoc Press: U.S. subprime collapse reaches Welsh town
The problem in Wrexham is the sudden cutoff of mortgage credit to first-time buyers, who would normally benefit from lower prices.
Britain's housing market is based on a chain system, meaning sellers must wait for their purchasers to complete the sale of their own property. It's a house of cards that collapses if one deal falls through, making first-time buyers the key because they don't rely on the completion of another deal.
The loss of those first-time buyers has had a secondary effect on mid-range sales and will eventually permeate the higher end of the market, Jones added.
"It's a huge problem," Jones said. "Unless you have got the key to start the engine, it isn't going to go, is it?"
Those troubles are increasingly seen as a microcosm of the situation around Britain.
1 Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. enuii said...
I drive through Wrexham once a week and have watched it turned from a down at heel former Industrial town into a commuter one full of new build and retail developments. Wrexham like many other towns does not have the solid underpinnings it once had and will suffer badly when the money and the spending of the New Labour (mortgage funded) economic mirage dries up.