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getknk

Home.co.uk - Reports Home Prices Hit New Post-Crisis Low

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Not sure if it was posted before..

More analysis from home.co.uk

http://www.home.co.u...Index_JAN11.pdf

Time on market almost hit highest even compared to crisis period

Continuing a worrisome trend, the typical (median) Time on Market for unsold

properties has risen a further 13 days since last month and now stands at 148 days.

Meanwhile the average (mean) Time on Market is up 12 days to 219 days, only 15

days short of the record average time on market observed in February 2010.

Factors Are Pushing House Prices Down

• The mortgage and remortgage market remains in turmoil. In particular

proposed mortgage regulation could make it even more difficult to get

mortgages. Moreover, banks may be very reluctant to advance mortgage

funding when they need to pay back their huge government bailout loans (via

the Special Liquidity Scheme).

• Falling buyer demand.

• Distressed sales are becoming more prevalent particularly at the higher end

of the market.

• The financial squeeze and lack of consumer confidence dissuade potential

buyers from large financial commitments. In particular, the prospect of

spending cuts in 2011 is raising fears over a prolonged economic slump. Many

jobs cuts are planned in the public sector with knock-on effects.

• As prices drop the equity accrued against a mortgage debt drops and it is

harder to remortgage.

• Some new build property on the market and has yet to become fully

occupied.

• First time buyers have lost confidence and have lower savings for a sizeable

deposit as the cost of living rises.

• The housing market is being viewed as increasingly risky.

Factors Supporting House Prices

• Record low interest rates are likely to persist for foreseeable future. In some

instances they have reduced mortgage payments, but most importantly they

have served to reduce the number of distressed sales entering the market.

• House prices defied expectations in 2009 and early 2010, suggesting the UK

still has an underlying belief in home ownership.

• The rental sector shows renewed vigour.

• The likelihood of rising inflation due to further stimulus measures

(Quantitative Easing) will encourage capital flight to hard assets such as

property.

• Any extension to bank bailouts will ease mortgage supply

Edited by getknk

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Talking to relatives today - builder friend, been in the game years - so knew the ropes, was probably skilled and able enough to get work and old enough not to have to charge too much to keep himself going. Always had work.

Sold the van and given up over xmas.

High prices have once again killed any semblance of a market, so people don't move and don't do up the places they move to.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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