Wednesday, September 9, 2009
Recovery Built on Unstable Foundations
You have to register to read this one but essentially the article is saying that the average auction price is 30% down on what could be achieved through an estate agent, but what I am not sure about is whether that means the property is down 40 - 50% given that the sold value via an EA is probably down 15% from peak or more. Its not really news that property needs to be down 30% from peak in order to sell in todays market, I am of the understanding lenders are valuing 30% below peak and up to 40% for remortgages. What we need is for the market to stop being in denial of what is stopping property from selling (average sales per agent currently 1 or less per month) and adjust to TODAYS market and stop thinking that next year or the year after property is going to go back up to 2007 values!