Housing Market Continues To Fall For Tenth Month In A Row
We have all now become used to the news that house prices have fallen yet again, in fact most of us who take any interest in such things have come to expect the same announcement each month and, of course this month is no exception.
The latest survey figures from Hometrack have shown that prices have fallen for the tenth month in a row during the month of July, with an average drop of 1.2%. This is greater than the previous months’ figures, when prices fell by 1% and the average decrease in property value is up to 4.4% over the past twelve months.
Those people selling their homes are, on average accepting less than the asking price and once again the figures mirror those shown above, with vendors accepting an average of 90.9% of the asking price. This is good news for buyers who are able to make significant savings on the purchase of a new home, as well as increasing the likelihood of being accepted for a mortgage or home loan due to better affordability.
Of course, the fact that prices are still reducing has put many potential buyers off until things settle down and the same is true of lenders, many of whom are reluctant to offer loans and mortgages on properties, particularly for a high loan to value ratio, for fears of a negative equity situation in the future and due to this fact, those applying for a new home loan are needing to find a larger deposit to fund the purchase, another factor which is helping to slow the market.
The biggest decrease in prices has been in London and the South West, although these are the areas which have previously seen the largest growth rate through the course of 2006 and the first six months of 2007 and therefore it is understandable that they are also seeing the largest correction in property prices.
