Tuesday, January 13, 2009

Buying a Property in the Uk: a Few Signs That the Housing Market is Hitting Bottom Rock

When it comes to buying a home in the UK it seems that now may be the time. The market itself has been ailing for more than 12 months already. Due to the financial turmoil, buyers face increasingly stringent requirements to access mortagages by high street banks and estate agents are reporting that sales are virtually grinding to a halt.

The market hasn't hit bottom rock, with dropping interest rates, buyers with a substantial deposit available have a great room of maneuvre to impose their terms in negotiation of purchases.

Here are a few indications that the market may be bottoming out in 2009:

* The RICS recently reported that enquiries that led to sales decreased by about 1% in July. According to Bloomberg this is the lowest number of transactions since 1959.

* According to the Bank of England “the mortgage rates on popular fixed-rate products have fallen. The average rate quoted for a two-year fixed rate mortgage, for a borrower with a 25 per cent deposit, fell from 6.6 per cent in June to 6.36 per cent in July.”

On the other hand, the average asking prices of property for sale in South East England still increased from January to August 2008 (source: http://www.homesforsalelive.co.uk).This is a sign that sellers still expect to keep a return on their investment at the level of prices of the peak of 2007.

What does all of this mean to you?

With a buyer’s market it’s quite possible that we will see a surge in activity over the coming months. When that activity begins to take hold the prices may begin to climb again.

To put it simply, if you have been considering making a purchase, it may be a great time to buy your new home if you sit on a deposit large enough. With fewer buyers enquiring about homes sellers will be more flexible with their pricing and conditions.

By Juan Alabardan

Juan Alabardan specializes in promoting property search online

Article Source: http://www.articlesbase.com/real-estate-articles/buying-a-property-in-the-uk-a-few-signs-that-the-housing-market-is-hitting-bottom-rock-576483.html