Some lives have been blown into the housing market in recent times. However, the situation is very uneven across countries and the future remains highly uncertain.
Quick Move Now Summary housing market looks to institutions and key market indicators in financial sectors and the home to get an idea of where the market is and where it goes.
Halifax House Price Index 1.6% (monthly) -18.14% (from the peak in autumn)
Nationwide House Index Price 0.9% (monthly) -13.02% (in the fall from peak)
Interest rates 0.5%
Quick Move FIT 31%
1.6% Inflation
Economic Growth -0.8%
Unemployment 2.47 million
* Information compiled from various sources. Quick Move Now assumes no responsibility for its accuracy. Last updated 06/10/2009
Increases in housing prices have made headlines in recent months continuously. However, local market conditions vary widely by region, type of house value. We have identified a number of trends that explain in May in the market today and give us an idea of what can happen in the coming months.
What happens to property prices?
Supply and demand
There are a lot of aggregate demand, some people need to buy a house without or market conditions (for example, a growing family, business trip). At the same time, the lack of supply caused by the majority of homeowners do not try to sell their home because of market conditions. This combination is pushing prices It will not last forever.
The movement of property prices
Housing prices always fluctuate and the market reacts to the rapid fall price you can expect large fluctuations. In fact the analysis of the last house price crash in early 1990 shows that while there was a trend a prolonged general decline in prices were months of very occasional dramatic price increases that the market tried to stutter to life.
Regional variations
When the dust settles in this recession, the North-South divide may be greater than ever and can stay. In the field many home country, prices continue to decline and could do so over an extended period. In the Southeast there is often a shortage of housing, while in much of the rest of the country there is an oversupply.
What will happen to property prices:
A number of factors continue to cause volatility in housing prices in the coming months / years.
Limited group of buyers:
• Few buyers House 15-30% deposit to put down.
• Most buyers to sell a house to buy. It is still often difficult to sell and therefore, many home sales post before going there.
• Unlike years previous buyers with bad credit simply do not get a mortgage now.
• Many potential buyers are not convinced that the market established and do not want to risk their assets lose value in the future.
Home Sales
The number of owners selling their home is still well below health, long-term levels. In fact, home sales operations in June this year were 60% over the same month in 2007. The limited volume home sales is reflected in a temporary mismatch of demand and supply that will last.
Mortgage lending
As lenders try again losses coup and limit exposure as a result of fluctuations in the housing market, mortgages loans are difficult and expensive to obtain.
• The amount of mortgage financing available is below historic levels, banks attempt to limit exposure to the housing market.
• After being burnt fingers with sub-prime banks are unlikely to give loans to those with bad credit.
• In an attempt of balance sheet accounts, banks charge higher rates and interest margins.
• It should increase interest rates in coming months, will serious impact affordability.
Unemployment
Unemployment in the UK is almost 2.5 million and should continue to increase. The latest unemployment figures U.S. are running a year, a May 26 high, which indicates what is coming to this side of the pond.
Unemployment is not uniform and in areas that are less the housing prices made in the fall in May as demand dries up.
Dramatic reductions in spending is also expected that government and industry jobs go public. Many areas of England and Wales are heavily dependent on government jobs in the region and the impact could be dramatic.
Recoveries
A large number of homeowners defaulted mortgages. Under normal circumstances, they were taken, but mostly due to government pressure and concerns on performance / price of the shares much of this "bad news" has been postponed. The influx of large numbers of repos is still lower prices. Recoveries are usually very competitive list to ensure the home is sold. Normal home seller and then try to compete and the overall market was demolished.
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