Property asking prices - people are STILL holding out

chrisandanne

The cash buyers may cause a bit of a bounce if they see a bargain, when they're gone they're gone, they haven't got endless money. When the market is relying on mortgages propping it up it will fall further because banks have had their fill of lending on houses to people who can't really afford them. It's over.

I fully expect to see a bounce probably in the spring, and am not looking forward to the bulls comments on here when that happens !!. But as long as the banks don't lend they will have further to fall and it's just a case of keeping our nerve when all about are losing theirs. A x

p.s. I hope to God I'm right.

luvpump

chrisandanne wrote: »

The cash buyers may cause a bit of a bounce if they see a bargain, when they're gone they're gone, they haven't got endless money. When the market is relying on mortgages propping it up it will fall further because banks have had their fill of lending on houses to people who can't really afford them. It's over.

I fully expect to see a bounce probably in the spring, and am not looking forward to the bulls comments on here when that happens !!. But as long as the banks don't lend they will have further to fall and it's just a case of keeping our nerve when all about are losing theirs. A x

p.s. I hope to God I'm right.

There will probably be a "Bounce" at some point , but I doubt It will amount to much, prices will continue to fall throughout 2009 IMO, with unemployment rising so much

ad9898_3

Whatever you do luvpump, don't dig that post out where I complimented you on your avatar:D

Kenny4315

This is how difficult mortgages are to get a hold of at present, especially BTL's, I have a large victorian townhouse split into 3 flats one on each floor, I own the freehold for the whole building, I have even with markets falls over 50% equity in it, and rent easily covers expenditure, and its easy to rent out. My fixed deal came to an end recently (but luckily had covered myself with the deal as it tracks base rate after that for rest of mortgage), so went from 5.35 fixed, to 1.65 above base, ie 4.5 +1.65, now 3+1.65, so I'm actually winning now. I have substantial hard cash capital, yet my advisors found only 5 deals when they checked the system a couple of weeks ago, and although they feel it will ease in is still difficult to obtain sensible long term financing packages, (including fees). Market must therefore still continue to fall as demand is low due to financing issues and the banks aren't going to risk anything at present even on cast iron solid customers. As the banks are all to aware that houses are still well over-valued, and they are going to be taking further hits due to repossessions and bad debts.