Some slightly differing signals emerge from the mortgage lending reports this week casting doubt on the immediate direction of house prices and the chance of owners achieving quick sales on their properties. On the one hand the number of mortgages granted improved again to 45,000, but the actual amount lent showed a small drop.

The explanation seems to be that the deposits required by lenders, many requiring 25%, coupled with the recent reduction in house prices has caused a reduction in volume even with an increase in transaction numbers. If this is correct then the recent improved confidence about the bottoming out of house prices does seem warranted.

One extra explanation could be what might be termed the “bargain buyer” effect. Once there is a general consensus that property values have reached the lowest values, buyers are encouraged back into the market to make a sound investment. Some of these may be investors or cash buyers who have no need of a mortgage. In other words there may be a significant number of sales which simply are not reflecting in the mortgage approvals figures. These buyers will of course try to cash in on those wanting or needing to Sell House Fast.

Those seeking the bargains will naturally seek out the lowest priced property in certain areas, looking more for value than appeal. They will also barter with sellers to secure the best possible deal. The effect of this is that lots of the cheapest homes will be gone potentially in a very short space of time and buyers making a decision to buy in a few months time may be faced with a shortage of very cheap houses. That would be the time I’d try to pick if I wanted to Sell my House fast.

The likely result is that in a few months time the quantity of available properties encompasses more of the stubborn sellers, those who decided not to reduce selling prices to encourage a sale but who rather stuck to their guns and decided to wait out the market problems.

This may become evident in a short term upward increase in property prices followed by the much preferred gradual increase in line with inflation.

In any event the data does now seem to indicate clearly in the direction of a stabilised housing market. The feeling is that those looking for a bargain will now have to get in quickly and complete a Quick Home Sale before a price recovery begins in earnest. Sellers will also begin to be bullish about the chances of achieving good asking prices and will be more inclined to turn away very low offers.

As with any business, prices are driven by supply and demand. As these levels readjust there can now be said to be clear signs that the price falls are over and that the market has at least stabilised.

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This entry was posted on Friday, August 28th, 2009 at 10:17 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.