Since 2007 the housing market has been in turmoil.
Lenders stopped lending, house builders stopped building and home owners have slid in to negative equity.
Month after month house prices have slipped making the average price of a property in the region of 20% less than it was at peak. Only in recent months have the declines in the monthly falls really been noticed.
Many home owners are now stuck in negative equity unable to move. During the boom years when their house was worth a lot more they may have used the equity available from their home as unearned income. With this extra money people will have gone on holidays, purchased new cars and put their children through private education. Now that negative equity is here for many home owners, many people are feeling a lot poorer unable to draw down more equity out of their house.
For every person that is badly affected by house price drops there are people who are equally pleased with the falls house prices. First time buyers are beginning to think that they can finally get on the housing ladder and get their first property.
The first time buyer has a problem however. Banks are unwilling to lend the full value of the house, they are usually wanting a 20% to 25% deposit, and a high arrangement for the mortgage to go through.
Increasing unemployment and uncertainty about the underlying economy does not help the housing market meaning that the upward blips in the number of mortgage approvals and housing transactions maybe short lived.
There are many variables that affect all of the housing market, and it is very difficult to predict what will happen in future. What is certain, over the coming months there will be many false dawns, and lots of people with vested interests either talking up the market or saying that the housing market is going down.
Simon Gregson maintains the property website at http://www.housepriceincrease.co.uk
Simon_Gregson
Last 5 posts in Buying
- Things to Know When Buying a New Home For the First Time - June 6th, 2009
- First Time Home Buyer Grants - Down Payment Assistance From the Government - June 6th, 2009
- New Home Buying Tip - Owning Beats Renting - June 6th, 2009
- Pave the Road to Your First Home! - June 6th, 2009
- Now May Be the Time to Buy a New Home - June 6th, 2009
Things to know:
1. Check your financial status: can you afford a new home at a recession period? Do you have an emergency fund you can count on for at least six months? Are you sure you have a steady job as well as a stable job? Do you have enough money for the down payment?
2. Get a credible and well informed estate broker that could give you information about the best mortgage lenders. Do a proper research on few of them and establish a relation with at least two of them. This might involve opening account with the two. This… Continue reading
With these first time home buyer grants from the government, new home owners can get down payment assistance to help them purchase their brand new home. This is funding that is provided to tax paying citizen, generally through local government agencies, and can be obtained regardless of income or credit.
First time home buyer grants can provide as much as $20,000 in cash to be used towards your down payment or closing costs. That’s instant equity that you can put into your home and more money that you can keep in your pocket.
Buying a home is one of the biggest purchases… Continue reading
OWN: Your home builds equity for your future. You can use equity to move up to a new larger home one day, or to help send your children to college.RENT: No equity is built, no matter how long you rent. It’s like pouring money down the drain.
OWN: You control your monthly payment.RENT: Landlord controls payment.
OWN: New home buying tip: mortgage interest is tax-deductible. The government’s loss is your gain.RENT: No tax benefits.
OWN: A nice, safe backyard for children to play. You have room for pets, and also a garden.RENT: No backyard, no garden. Often pets not allowed.
OWN: A new garage… Continue reading
Buying a home is one of the most important decisions you will ever make. It will take time, money and lots of energy. Before you get started, there are some things you will need to learn and do before making that huge purchase. One of the keys to paving the road to your first home is great planning. The first question you answer should be why do you want to buy? You also need to decide if you are ready. Most couples dream of owning their own home and being able to raise a family in it for years to… Continue reading