House prices will fall due to eagerness to sell
20th July 2010
It has been reported recently that house prices are likely to fall again as a result of homeowners' eagerness to sell their properties. The report claims that a rapidly rising number of homeowners are trying to sell their homes and that this will spark a drop in property prices.
Since their peak in 2007 house prices in the UK have been falling, but over recent months had been picking up to some extent. However, the influx of homeowners trying to sell their homes is set to reverse the trend once again and trigger a fall in property prices.
Asking prices have already fallen for the first time this year according to the data, and by the end of this year are set to have plunged even more. It is thought that the average asking price for properties in England and Wales will fall by around £14,000 by the end of this year. The data has been released by the property website Right Move.
This month saw asking prices fall by around 0.6 percent, which equated to nearly £1,500 being knocked off the average property price. This is said to be the first drop in property prices since December of last year. Right Move claims that the fall in asking prices is the result of more people selling up, leading to more supply than demand.
Every week more than thirty thousand homes are being put on the market across England and Wales, and this equates to a rise of more than 50 percent compared to July of last year. However, whilst more homes are flooding onto the market the number of potential buyers is dwindling, with many put off by the current financial climate, high deposit demands from banks, and lack of affordability.
Many would be buyers are being refused for mortgages by banks, which is another reason why supply is higher than demand at present. Only eleven thousand mortgages a month are being approved at present, and this is just a third of the number of properties coming onto the market in the same period.
|
Digg
del.icio.us
Yahoo
Diigo
