With financial markets going through difficult times as a result of the credit crunch, recent figures indicate that house prices are tumbling, with many causing sellers to think twice about putting their properties on the market.
According to statistics collected by a mortgage lender
, house prices have fallen by around 14.9% over the past year. While this may be seen as a good step for first-time buyers, many homeowners find themselves struggling to sell their properties, with many choosing the withdraw their houses from the market until conditions improve.
But with the ongoing credit crunch affecting everything from mortgages to credit cards, many sellers are finding themselves having to consider the status of their properties on the market. Every week, more and more sellers have to re-evaluate the price of their properties in order to attract potential buyers. Indeed, one could argue that there is a sense of realism about such decisions, with sellers having to watch the markets and fluctuating mortgage rates carefully.
Despite recent interest cuts, over 20% of UK properties had been on the market for six months, significantly down from previous months. These cuts could be seen as an indication that market conditions face further stagnation in future. However, whilst house prices have been falling, it has also been extremely difficult to try and pinpoint a good mortgage deal, with many lenders appearing to ration mortgages in an attempt to stabilise market conditions.
With the ongoing credit crunch affecting all areas of the financial sectors, it is best to thoroughly research the market before tying yourself to any deals on your mortgage or insurance. If you are looking to sell your house, be wary of fluctuating conditions, and don’t be afraid to speak with your estate agent for advice on further steps that may be required to sell the property.
