50% drop in house sales in one year
August 21, 2008
The housing market has been experiencing major problems over the past few months, with sales activity hitting rock bottom and house prices plummeting. A recent report has shown that house sales over the past year have dropped by around 50%, further indicating the housing downturn is getting worse. There are a number of factors that have contributed to falling house sales, and estate agents have reported very poor sales figures over recent months.
Since the onset of the global credit crunch many consumers have been unable to get a mortgage as a result of tighter credit conditions put into place by lenders. This has affected the sale of properties quite dramatically. Falling house prices have also affected house sale activity, with many would be buyers too nervous to take the plunge in case house prices continue to fall after they have purchased their home.
One industry official said: ‘The bad news on the housing market currently remains relentless, with very low housing market activity being a consequence of the toxic mix of stretched buyer affordability and extremely tight lending conditions.’
Research showed that last June around 140,000 homes were sold for £40,000 or more. However, for this year the figure has plummeted to just 77,000 homes.
Whilst house sales figures have fallen officials have said that there has been a significant rise in the number of properties that are being sold at auction as a result of rising repossession levels stemming from homeowners being unable to keep up with repayments. One official stated: ‘Repossessions now make up over one in five of the properties on sale at auction.’
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