Ghost Of Christmas Yet To Come December 24th, 2008
Don’t worry, I’m not about to go all Dickensian on you all just before Christmas, it’s just that with everybody looking back over what happened in the housing and homeowner loan markets throughout the course of 2008, it might be a pleasant change (or maybe not!) to consider where we are heading over the course of next year, for those individuals looking to either move home, or take their first step onto the housing ladder and apply for their first homeowner loan.
First of all, let’s get the gloom out of the way. The Royal Institute of Chartered Surveyors (RICS) has just published its latest predictions for the housing market and, not surprisingly is expecting average property prices to continue to decline throughout 2009, with a predicted drop of around 10 per cent over the course of the year, giving an overall decrease in property values of approximately 25 per cent from their peak in 2007.
RICS claims that the worsening economic outlook for the UK is largely to blame for the price drops, coupled with the continuing lack of available funding and tightening lending criteria from banks and building societies on homeowner loans and other secured loans.
On a more positive note (it is Christmas after all!), RICS claim that we have probably reached the bottom of the slump in house buying activity and low house prices, coupled with low interest rates on secured loans is likely to start encouraging potential buyers, many of whom have been waiting for the past year, to re enter the market.
The recent Government interventions into the homeowner loan and mortgage markets is also hopefully going to start filtering through the system, making it slightly easier for buyers to obtain a new secured loan. Confidence is starting to slowly return to the housing and homeowner loan markets and could be just the catalyst we require to turn things around.
Finally, on behalf of everybody at Cheap Loans, I would like to take this opportunity to wish all our readers a very merry Christmas and a happy New Year and thank you for using Cheap loans throughout the year.