How Much Lower Can House Prices Fall?

It is very much doom and gloom in the housing market; the credit crunch has certainly made its mark. Here in the UK house prices have fallen by ten percent in the last year and this morning it has been reported that on estate agents only sold an average of property per week last month. So this begs the question how much lower can these house prices fall?

In reality the long periods of double digit percentage growth in the housing market were never going to be sustainable. In a way this house price correction could be seen as a good thing. As an example I have two children and it will be far easier for them to get onto the housing ladder now that the prices have fallen back to a more realistic value.

The mortgage markets and loan liquidity are starting to pick up and more deals are starting to become available. From what I have read and heard people who have a sound credit record and who are able to put down a fairly large deposit will have no problems in finding a mortgage at a half decent rate. It is the people who have an adverse credit history who are going to continue to struggle to borrow money. It looks like these lenders have learnt from their past mistakes and are not going to have the fingers burnt for a second time. It is therefore more important than ever to ensure that you do not miss any loan or credit repayments and that you keep your credit record in good shape.

As for how much further house prices may fall I personally believe that we still have some way to go, in the next twelve months a reduction of another ten percent seems likely. This no doubt does not make good reading for many of you however please remember it is only my personal prediction and that I could well be wrong.

Steve Hill helps to promote a number of websites including:

http://www.stammering-stuttering.co.uk

http://www.stutter-cure.com

Article submitted Tuesday, September 09, 2008
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