Rightmove, the property website, reported a "3.2% asking price fall exacerbated by seasonal factors and HIP-avoiding first-time sellers" today amid fears in the market that property prices may continue to fall. There have also been reports that the National Network of Independent Surveyors are advising their members to value properties conservatively fueling difficulties in people getting high Loan to Value (LTV) re-mortgages.
January is set to be a trying time for the British housing market with areas such as Wales being the worst hit.
A growing sector in the current market are Discount Property Purchasers (See article on Discount Purchase Properties) who are seizing the opportunity of distressed sellers and purchasing well below the current market value. The average discount is between 15% - 20% which counts high LTV borrowers out but are a lifeline to homeowners with enough equity in their property.
Mortgage rates may fall again after Christmas but it is still unknown if this will help stable the market in its current condition.
The US Faderal Reserve has started to look into regulating the mortgage market, particularly the Self Cert mortgage sector amid concerns that adequate checks are not taking place.
This will hopefully quell the current credit crunch, although it may stop some people from re-mortgaging, fueling further the dropping property prices.
Overseas US property investment
Overseas investors have started to invest heavily in the US property market as they have predicted that property prices are currently undervalued and maybe a good potential investment.
If you would like to learn more about property investment and mortgages in general why not visit my mortgages a-z website.
To view the full copy of the RightMove.com December price index report click here.
Daniel Morgan
FruitMortgages.com
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