Property Rescue Blog

Figures just released show that house prices fell at a record level during the past year.  From October 2007 prices are down 12.4%, bringing the average house price to around £162,000 and cutting a massive £20,000 off last year’s value.

This is the 11th consecutive month that prices have dropped, with Northern Ireland and East Anglia being particularly hard hit.  The only place that has bucked the trend is the city of Durham, where prices have actually shown a slight increase.

Although home owners may be distressed about the cut in value of their property, in theory the fall should be good news for first time buyers who have previously been unable to get on the housing ladder.  But the downward trend is making such buyers nervous as they wonder how much further prices will fall and, understandably, are showing reluctance to expose themselves to the threat of negative equity.  More importantly, the credit crunch and the crisis in the banking system means that mortgages are hard to get; a factor that looks unlikely to be resolved in the short term.

Commentators are pessimistic about the outlook over the next 12 months, many predicting that property will continue its decline in value.  Some see the fall being halted at the end of 2009 and a gradual increase happening over the following two to three years.  At present, the US economy and the world financial situation is so volatile that any forecasts must surely be taken with a pinch of salt.

Is it impossible therefore to sell your house?  The lack of first time buyers, the instability and nervousness of the market and the wider economic issues all combine to put people off moving house.  There are some, however, that have no choice other than to move, perhaps through work relocation, family reasons or personal debt.  Estate agents are advising that people need to be very realistic in their pricing if their house is to attract the few buyers out there.  They add that sensible vendors will make sure surveys don’t throw up any nasty surprises, and advise that properties need to be presented in the best possible way.

If you need to sell quickly for whatever reason, there is an alternative to the open market.  Selling your home through Property Rescue gives a number of advantages, including a fast secure sale, ‘paid for’ solicitors fees on the sale, no requirement for a Home Information Pack, and a guarantee that Property Rescue will make an offer for your home. 

For information about how to sell property in a volatile market, call Property Rescue today.  Their advice is free and entirely without obligation.