Over the past few years, the home mortgage market was definitely focused on sellers as property values continued to rise and loans were widely available. Fast forward to now and the home mortgage market has changed significantly. Gone is the easy availability of loans and property prices have plummeted. The home mortgage market has now become a buyer’s market, but until banks start offering more mortgages, it may take awhile for the housing market to recover.
David Kuo, Head of Personal Finance at Fool.co.uk, says, “In the space of a year, the housing market has turned from a strong seller’s market to a brawny buyer’s market. But with more tightening likely, the fall in monthly mortgage approvals could extend to 13 next month.
“Fool.co.uk has predicted that property prices will fall 20% this year. Consequently, sellers who want to avoid the disappointment of a house sale falling through at the eleventh hours should think seriously about pricing their properties to go. It means forgetting about how much your property was worth previously, but how much it may be worth tomorrow. Buyers with the necessary finances to complete house purchases are now as scarce as hen’s teeth, and could be even rarer next month.”
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