Property News > Steep fall in house prices

Steep fall in house prices

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.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.

Related Articles

Gifting and Inheritance: Easing the Burden of Estate Planning

Estate planning can be a difficult past-time, especially when you consider the potential tax levies placed on high-value assets such as property. The biggest issue facing individuals is how to ...
View >>

The Real Grand Designs: Transforming Everyday spaces into Modern Luxury

As anyone who has ever watched the television program Grand Designs can testify, there are some property investors who specialise in transforming everyday structures and spaces into unique luxury abodes. ...
View >>

3 Common Home-improvement Mistakes to Avoid

When it comes to home or property modifications, there is often a gap between your ideas and aspirations and the final outcome the project achieves. While the National Association of Home ...
View >>

Need Help?

Thank you. We will give you a call back as soon as possible!
Name *
Email *
Phone *
When would you like a callback? *