Has the housing market hit freefall yet?

Colin_Kee

I see the number of New Mortgages Issued in the past month or so has fallen quite dramatically & House prices in GB & Ireland are falling.... I also heard on the radio news of Builders putting the hold on some New Developments as there are so many houses for sale in the areas, they're worried they won't be able to sell any new houses..

bingo_bango

I know of some developers around the S Belfast area who have effectively frozen their plans.
They're saying that the banks are less likely to loan for developments in light of the knock on effect from the US fiasco, and the turmoil it has caused in the money markets, but they're not saying these developments won't happen.
They are still actively looking at developments, they're just not rushing into building them now.

I reckon we have about another 6 months of this 'stagnation', but once spring comes, there will be a revival of fortunes. No massive house price rises again, but the market should definitely become more fluid again.

As for less mortgages, the lenders have tightened upon their criteria. They may actually want you to prove that you have that 'golden' income you told them about
The recent interest rate rises seem to be doing their job, but it's not in the lenders interest to stop anyone having a mortgage. I'd suggest that come the start of the new financial year, they'll decide that property is still a good investment, and the number of mortgages will rise off the back of that.

BTW, house prices around me are still bouyant. My property is worth around 375% of the price I paid 3.5 years ago. I have noticed a slight decline in the number for sale, but all those that are on, sell quite quickly, and all seem to go for over the asking price.

CL

What area are you in Bingo

ballyblack

know of some developers around the S Belfast area who have effectively frozen their plans

This is probably because the developers and their lenders are not sure the price the completed new build units will command in say 18 months time?

The upshot is there will be less new property for sale and prices may edge up again albeit not dramatically, the developer may be holding back for this reason?

bingo_bango

CL wrote: »

What area are you in Bingo

Dunmurry...

bingo_bango

ballyblack wrote: »

This is probably because the developers and their lenders are not sure the price the completed new build units will command in say 18 months time?

The upshot is there will be less new property for sale and prices may edge up again albeit not dramatically, the developer may be holding back for this reason?

Always would have to be a factor in their decisions.

There are currently two developments nearing completion beside me. One has something like 14 apartments, the other has about 8 apartments, and 18 townhouses.
I'll be watching with interest to see how the sales go.

The developers are however still actively looking at prospective sites, so they don't seem too afraid of any loss of profit here, either now or in the mid to long term future.