2012 has so far brought nothing buy worry for home sellers.
It would appear that the housing market is under attack from all angles (from house sales, to house prices, to problems within the economy) and predictions for the short and long-term do not alleviate any of the anxiety and worry home sellers and home buyers are feeling.
House sales in the United Kingdom recorded an 11% drop in 2011 and fell to just 869,000. These statistics confirm fears that sales are continuing to run at approximately half the levels recorded before the banking crisis in 2007. It is likely that home sales will remain low over the coming year. The worst news would be if sales were set to follow the pattern of last year and fall even further.
Unfortunately, the story is similar for house prices. The value of property is expected to tumble in 2012; some voices within the property industry feel that the value could fall by as much as 10%. Home buyers would then negotiate accordingly and even more heavily than before. 2012 is set to remain a buyers’ market.
Over the last few years, the gap between homeowners’ asking prices and actual selling prices has been widening. The figures suggest that many homes have been overpriced by as much as 40% which means extra delays, more uncertainty and extended difficulty on the market for those trying to sell their homes. Overpricing as well as declining house values will cause an escalating imbalance and further trouble for homeowners.
A recent survey undertaken by zoopla.co.uk revealed that 48% of people believe the housing market can only recover when mortgage availability improves. However, 89% of people surveyed feel that it is now harder to obtain mortgage funding than it was three months ago. The proposed mortgage ruling devised by the Financial Services Authority and to be implemented by 2013 would place further restrictions on lending and could suffocate the already struggling housing market.
In such an unpredictable and unstable market, vendors are becoming increasingly frustrated at the lack of certainty and promise where their property, area and future are concerned. The difficulties within the housing market and economy could upset the dreams and aspirations of many homeowners and make 2012 another challenging year.