subject: The Property Market Is A Buyer's Market, So What Can Sellers Do About It? [print this page] Surveyors in the UK have been reporting that more people are now putting their homes back on the market for sale, even though the housing market in general is still moving very slowly. But this has done little for the extremely slow increase in house prices in the UK.
Many buyers have been demonstrating a growing interest in viewing properties, but they are holding back due to a lack of mortgage finance available at competitive rates. April's sudden good weather added to the increase in viewings completed, however only wealthy buyers with available capital able to put down a sizeable deposit are likely to be able to capitalise from the current low prices on the market.
Experts in the marketplace have commented that although there are many more properties being put up for sale, there still appears to be little in the ways of sales actually going through at present, possibly due to the fact that the market is still very slow in its recovery.
One of the UK's leading property websites did a poll recently and found that almost three quarters of people believe that property prices in the UK will either remain the same, or be slightly higher in twelve months from now.
Interestingly, the number of "price pessimists" who forecast that property prices will be lower again in one year's time has fallen from just under a third to just under a quarter. If you happen to be one of the fortunate few to have saved enough for a deposit, you might be able to take advantage of an opportunity that comes along once in a generation, purchase property cheaply now and you could see its value increase in the next few years.
The poll also asked whether people believed that properties were currently undervalued, with over 40% of people answering yes. Of course, this may explain while, although there is more activity in terms of houses being put on the market, it is still nothing like the numbers that we saw before the financial crisis.
Those who manage to secure the necessary funding to buy new properties or to move up the property ladder should consider a remortgage. As the cost of borrowing is still at an all-time low, those who are approaching the end of their fixed term mortgage deal might benefit from accessing reduced monthly instalments. They can do this by checking remortgage deals, and finding a new mortgage with a rate. Monthly savings could be set aside to finance a deposit with which to buy more expensive property at a later date.
Rightmove also discovered that the 45% of people who planned to purchase property hoped that properties were currently overvalued. RightMoves House Price Index showed that unsold stock in the hands of estate agents took its "highest jump in four years". No doubt the asking price of the houses is probably the reason for the surplus stock, which tends to suggest that whilst prices might not continue to fall, sales are unlikely to revive.
If you cannot reduce your property price in order to sell your home then an alternative could be to look at remortgage deals to reduce your repayments. You can delay the sale of your home for a year or two until the property market starts to recover and benefit from lower mortgage repayments in the meantime.
Most market experts agree that property prices are all likely to increase in the coming years, so it may be worth the wait to get a little more of a return on your investment.
by: Howard Ogollegos
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