Jan
8
08/01/2009
Happy New Year from everyone at Property Rescue. We wish you a successful year but remind you that we are here to help should you find yourself in financial difficulties and need to sell your home fast.
As we start 2009 the financial climate is very similar to the one we’ve been experiencing outside…freezing! Predictions for the New Year are worrying for everyone – savers, borrowers, young and old alike. No one is unaffected by what’s happening in the UK and world economies, and despite the raft of government measures taken over recent months the forecasts of what’s to come remain pessimistic.
Two of the big lenders have reported that house prices dropped by approximately 16% last year. This is a massive drop and the biggest fall seen in a calendar year since records began. In real terms that equates to more than £22,000 wiped off the value of the average UK home.
A key effect of house price falls is the negative equity trap. Some leading bankers and financial commentators feel that the property price drop is only about half-way through and could amount to around 25-30% from ‘top to bottom’. This is a gloomy view that is certainly not shared by everyone, but it is food for thought for those who are already in – or nearing – the situation where their mortgage is more than the value of their home. The decision of whether to sit it out and wait for prices to eventually recover or to sell up and cut losses is a tricky one, especially in a market where there is no end in sight to the downward price spiral.
Another difficulty for prospective sellers is knowing the true value of their homes. In the current market an estate agent’s valuation today may not be the same as the house can achieve tomorrow. Buyers are in a position of strength and are likely to negotiate hard to get a good deal. After all, they too are nervous about what their new investment is likely to be worth in a year’s time.
None of these factors do much to warm the financial frost being keenly felt by many homeowners. Sit tight or sell up depends on your individual circumstances and how you believe the market will look in a year or two’s time, but if you are on the brink of selling or you need to sell fast, consider how Property Rescue could help.
In such a difficult market place Property Rescue still give you a guarantee that they will buy your home, subject to your acceptance of their valuation. It’s a glimmer of warmth in an otherwise cold outlook, so if you need to sell, call Property Rescue for more information. All calls are in strict confidence and a valuation will be given on your home without obligation.