End of Falling House Prices
New research suggests that an end to falling house prices could be in sight.
Figures show that the number of new vendors more than halved to 43,000 this month, while there were 429,560 buyer inquiries in the first two weeks of January 2009 compared to 199,762 in the same period last year.
Last week, Which? and Citizens Advice warned that 1.5 million homeowners with big mortgages face difficulties if house prices continue to fall.
Fewer new homes coming onto the market coupled with increased interest from buyers could be behind the change.
“The speed with which prices have declined has been worrying, but it does mean we are potentially reaching the bottom sooner.”
He adds that, for would-be buyers, 2009 could be the “year of the property deal”, suggesting that cheaper prices and mortgages will help people get on the ladder.
The Guardian reports that groups told the Commons Treasury that if properties fall in value by another 15 per cent, many people will find themselves in negative equity or with mortgages equal to more than 90 per cent of their home’s value.
Category: Property News
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