The average time that a property is on the market has increased to 9.3 weeks, the highest level for a year. This is up from 8.7 weeks in July. The increase in time is down to the increase in supply of property by 16%, and demand falling by 1.6%.
Demand for property was down by 2.9% in September, the 3rd month in a row that demand has fallen. The number of registered buyers has also fallen in September by 6.5%. Demand in London and the South East has seen the biggest drop, at 10%.
Another day brings yet another announcement of a quiet housing market. This time figures from the British Bankers Associations (BBA) shows mortgage approvals falling for the thrid month in a row for August. 31,767 mortgages were approved, down from 34,219 in July, the lowest in 16 months.
A figure below 36,000 approvals per month is considered consistent with house price falls.
Banks have undoubtedly tightened their lending criteria, which has restricted mortgage approvals, but the BBA commented that the latest figures also show a fall in demand for mortgages.
The head of the Council of Mortgage Lenders has today warned that the goldern age of home ownership could be over and that new mortgage rules will cause house prices to fall further.
New rules are expected to be introduced from next year, with tough guidelines on how much someone can borrow and that could also see an end to interest only mortgages.
He argues these new rules make banks far more risk averse and therefore less likely to lend money for home purchase. New affordability criteria would mean that even fewer first time buyers will be able to access mortgages, removing an important prop to house prices.
85,000 properties were sold in August, almost half the 162,000 sold in August 2007 prior to the start of the credit crunch.
This again adds to all the evidence we've seen lately and experienced from customer enquiries that they housing market is continuing to be very quiet, with many buyers unwilling to commit to buying or unable to proceed because of lack of available finance.
If you need to sell your house quickly, then this market really will not be working to your advantage and you could be waiting for a house sale while the value of your house continues to fall.
If you'r ein this situation, give Quick Move Now a call. Our service offers you certainty and speed for your house sale. Call 0800 068 3366.
Evidence of a faltering housing market is shown today with new mortgage lending figures showing a 10 year August low of £11.4bn, down 14% on July's figures. These low levels of mortgage lending are expected to continue for the next few months.
Coupled with today's latest house price figurs, activity in the housing market looks set to be low for the forseeable future.
If your're struggling to sell your house in thsi slow and falling market, call Quick Move Now. We can buy your house, quickly and for cash, giving you the certainty that your house is sold and enabling you to move on. In fact, selling your house to Quick Move can out you in a fat stronger bargaining position when buying your next property - having already sold your house will be attractive to any seller and being in a position where the sale isn't dependent on you selling your home means that you could negotitate a better deal on your new home.
For the 3rd month in a row, house prices has fallen, with the latest Rightmove survey showing a fall of 1.1%. New sellers have dropped their prices by 3.4% or £8,000 over the past 3 months.
Annual house price inflation, as a consequence, has fallen from 4.3% in August to 2.6%.
The fall in prices is being blamed on an oversupply of property and few proceedable buyers. Rightmove did say though that new properties coming onto the market had fallen, so perhaps the oversupply will ease over the coming months.
The current state of the housing market has meant a busy time for Quick Move Now.
As we have mentioned in numerous blog posts, the housing market is currently suffering from a lack of buyers, for a number of reasons: lack of first time buyers, restricted access to finance making it difficult for many people to obtain a mortgage, economic uncertainty leading to people delaying their big decisions.
All of this has led to many frustrated sellers, with people either finding it taking many months to sell their house through an estate agent, or as we're increasingly finding, people not finding any buyers at all.
All of this creates a great deal of stress, with people not able to move on, perhaps to a new life overseas, to a new job located in a different part of the country, or for people looking to upsize of downsize - whatever the situation, people are just finding it hard to sell in a realistic timescale through the normal estate agency route.
This has led to a large increase in enquiries to Quick Move Now and we're pleased to say that we've been able to help many people by buying their properties, completing deals with a matter of days. Yes we do buy at a discount to the full valuation, but what is that worht in relation to you finally being able to move on?
If you need to sell your house quickly, do please call us and let's see how we can help you. Call 0800 068 3366 or complete our FREE online estimate.
The latest RICS survey shows estate agents at their most pessimistic about the housing makret for 18 months, as they warn people looking to sell their homes that they need to be more realistic about their sale price expectation and that they need to accept offers 10% below the asking price if they want to complete their sale.
Prices are being suppresed by a lack of first-time buyers, an oversupply of property and economic worries. At the lower end of the market, houses are typically selling for 10% less that the price estate agents are advertising them for.
This is often something that we encouter - people often approach us with a price for their house given to them by an estate agent eager for their business, but as reflected in the figures above, these prices are often unachievable and we help people to understand what price they can realistically hope to get for their property.
The tightening of lending criteria is increasingly making it hearder for first-time buyers to get on the property ladder. Figures released today show that first-time buyers now account for 34% of the housing marlet, down from 38% in July, the lowest proportion since August 2007.
Mortgage approvals for first-time buyers was don in July, despite the overall number of approvals rising. So first-time buyers are either just staying away from the current market and/or are finding it harder to get a mortgage. 20% depsoits for first-time buyers are the norm and rates are from from the historic lows that may be expected as banks look to rebuild their balance sheets.
Without first-time buyers underpinning the housing market, the chances of a further fall in house prices is far more likely
House prices fell in August by 0.9% according to the latest figures from Nationwide. This follows a fall of 0.5% in July and leads to a sharp decline in the annual house price inflation rate to 3.9% from 8.7% in June.
Falling prices are being blamed upon an increase in supply of properties for sale over the past few months. Byers have therefore found themselves with increased bargaining power and driving prices lower.
Several economists are now forecasting further falls, reasoning that only a shortage of supply was holding up prices. Capital Econommics see prices falling by 5% this year and a further 10% in 2011. It argues that house prices were disconnected from the real economy last year & the first half of this year. Now house prices are coming to reflect what is going on in the economy, and the threat of job losses, falling incomes etc having an impact on prices.
Also the securing of mortgage founding continues to be an issue for buyers and particularly for first-time buyers helping to stifle demand. In July, just 48,722 mortgages were approved for house purchases, a level consistent with falling prices.
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