House hunting season gets off to a slow start

 

April 17, 2008

Industry experts have reported that the spring house hunting season this year has got off to a very slow start, as the effects of the credit crunch continue to bite, and potential buyers struggle with trying to raise the money that they need to purchase a property. The global credit crunch has impacted heavily in the housing and mortgage sectors, and the additional predictions that house prices are going to fall over the next two years is also affecting consumer interest in purchasing a property.

Industry professionals have stated that the Easter period is usually the start of the house hunting season, but this year saw a marked slowdown as a result of a combination of these factors. The housing market is in the midst of a slump at the moment, and with property prices predicted to fall by significant levels over the next two years many consumers are putting off purchasing a property until house prices do fall.

There are also tighter credit conditions to consider, and many lenders have really tightened up on their lending criteria, so an increasing number of people will find it very difficult to get the mortgage that they need to get a property. This has resulted in an increasing number of people being unable to get a mortgage, which means that there are fewer people looking for a property due to lack of affordability and finance.

One industry professional added that existing homeowners would be in for a shock when they realised how much their properties were really worth. He said: ‘There may well be a rather sluggish start to house-hunting this year. The real shock will come later in the spring when people who have to sell their houses for reasons of employment realise the prices are well below what they may have expected. These sellers are the ‘moving part’ in the machinery of the market. They will show us how bad things are.’

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Written by admin · Filed Under First Time Buyers, Fixed Rate Mortgages, Mortgages 

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