Buying and Selling Market Commentary January 2009

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2008 was a disaster for the buying/selling industry and all related services, less because of the impact of price falls, much more because of the halving of transactions. The property crash of 2008 is completely different to the last falls in the 1990s:-

1. The fall is mainly due to a lack of credit, rather than high interest rates.
2. In this market people simply couldn't buy or sell so transactions halved.
3. Today over third of private homes are owned outright.
4. People who bought in 2000 still benefit from a massive rise in their property's value.
5. Over 50% of people have repayment, not interest only (with endowment) mortgages.

For buyers and sellers it's still a tough market, but unlike economists who treat property as an 'asset', to most people it's a home. Their choice is to stay with parents/family, rent or buy and some are choosing 2009 to purchase. For those that are trading up they can actually benefit from current market conditions. For first time buyers, as long as they can raise the deposit and are will stay in the property for five+ years, then they can probably get a good bargain from a desperate seller.

For those who are fed up trying to sell, they are likely to take their property off the market, spend money on home improvements which will reduce the choice of properties on the market in the coming months. 

Repossessions will sadly rise unless homeowners turn to the independent help and support funded by the government (such as National Debt Helpline) and Citizens Advice Bureau as soon as they know they have a problem. Although repossession is an awful experience for those going through it, it's important to remember that despite big numbers quoted, repossession still affects less than 1% of mortgaged homes.

For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit ABOUT US, see Kate on video and for media appearances, contact:

Sylvia Tidy-Harris
STH Management                    
Tel  +44 (0) 1530 263221
Mob  +44 (0) 7970 646872
Fax: +44 (0) 1530 264018

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