Below is an article written by the Estates Gazette on falling house prices and homes sold at a loss, it seems typical of what we see daily as headlines.
These headlines are mere attention grabbers which make everyone quake in their boots. Hold onto your boots people… this credit crisis ride isn’t over yet but try to take these headlines with a pinch of salt. Take a look around your local area, we would like to hear from you. Have prices fallen 16% ? So a £300,000 property that sold in 2007 (not asking price!) has now sold for £252,000 this year?
EGI.co.uk – 07.01.2008 – Number of houses selling at loss surges* in London
Hundreds of homes in London were sold last year for less than their purchase price, according to figures from the Land Registry. In 2008, 535 houses and flats were sold in the city for less than the price they were bought for. This represents 2.2% of the total 24,398 homes sold in London last year. This is the first time in more than a decade that homes in London have been sold at a loss. The final figure could be worse as sales completed in the closing months of the year will not yet been registered at the Land Registry. Most homes sold at a loss were in south-west London and east London . House prices have fallen by 16% in the last 12 months, according to Halifax.
2.2% increase is not a surge.
Recent Head Turning Articles:
- House prices fell 16.2% in 2008 says the Halifax (Independent Sat)
- House prices will fall by 10% in 2009 predict compilers of the FT House Price Index (FT Sat)
- House prices will fall by 5% in 2009 say Hamptons, SmartNewHomes, Assetz, Marsh & Parsons and John Charcol (FT Sat)
- House prices will fall by 15% in 2009 predict BGC Capital Partners whilst Hargreaves Lansdown go as far as predicting a 20% fall (FT Sat)
- House price falls were most accurately forecasted last year by a fox who picked a 14% fall at random at the beginning of the year – this year he/she has predicted a fall of 3% (FT Sat)
- Mortgage approvals fell to a fresh record low in November while banks reduced loans to households and businesses (FT Sat)
- Homeowners were more likely to sell at a loss last year in Newcastle, Nottingham and Durham – one in 20 homes there were sold for less than they were bought (FT Sat).
We would like to hear from anyone who was forced to sell their home at a loss due to falling house prices.