National Homebuyers warn homeowners to prepare for reality check on home value
January 20, 2006 (PRLEAP.COM) Business NewsHomeowners intending to sell in 2006 can expect to achieve less for their prized bricks and mortar than they may anticipate. This warning comes from Julian King, managing director of National Homebuyers (www.nationalhomebuyers.co.uk), the country's leading consumer facing property purchasing company.
National Homebuyers' experience is that many people are not able to wait to sell in a falling market - it is taking double the time it took to sell a house two years ago. This lengthening of the sales process is partly a result of over valuing by estate agents and partly because many sellers continue to have unrealistic expectations about how much their property is worth.
Julian King said, 'The housing market is still trapped in the vicious circle of upwardly spiralling asking prices which are not matched by buyers willingness to pay such sums.'
He continued, 'House price rises can only be sustained if demand from buyers consistently exceeds supply. This appears highly unlikely for the foreseeable future as a growing proportion of the younger generation are unable to afford to step onto the property ladder (figures from the Council of Mortgage Lenders show that first time buyers have fallen from a traditional 50 per cent of the market to just 29 per cent). In the meantime, offers will continue to fall far below inflated asking prices.'
It had been hoped that SIPPS would encompass property and that this would give the market a much needed boost but these hopes have been dashed and it seems unlikely that the market confidence will be quick to return.
King concluded, 'Those selling in 2006 need to have realistic expectations about the price they can expect to achieve. We cannot expect that yields on property to reach again the levels seen in the 1990s. I expect to see a continued stagnated market throughout 2006, with some parts of the country such as the South West and East Anglia seeing a further drop in prices.'
For more information call Will Cairns on 0870 979 0900