Property market in "meltdown", homeowners in denial say National Homebuyers
The UK housing market is in "meltdown" and homeowners should be seeking a fast property sale.
[UKPRwire, Thu Jan 24 2008] Website Home has published its latest Asking Price Index, revealing that 60 per cent of homeowners in England and Wales incorrectly believe that their properties have increased in value in the last 12 months.
The index shows that in Wales, the East Midlands, the north and the south-west, asking prices grew below the retail price index.
This means that prices fell in real terms but many owners do not want to face up to this truth and have managed to convince themselves that their properties have increased in value.
Home is trying to get the message out to people that they need to wake up to the fact that house prices are falling and should secure a fast property sale in order to get as much money as possible for their homes.
"Looking at the recent monthly fluctuations in market prices, it is evident that too many sellers are still in the denial stage. The unpalatable truth is that in the post-crunch credit environment properties simply aren't selling at 2006/7 prices," said Doug Shephard from the firm.
"We are currently witnessing a meltdown in the UK housing market, which is in danger of becoming an unstoppable out of control juggernaut, likely to lead to devastation across the economy.
"It is high time that home sellers quickly move from denial to acceptance," he added.
Julian King of National Homebuyers agrees with Mr Shephard, "Property prices have been over valued over the last few years.
"As such, the consumer's perception of reality is tainted their belief that they will sell their property at their inflated value.
"When the homeowner chooses to sell they will find a stark lack of buyers and even fewer interested in paying the unrealistic asking price".
Mr King is a director of the UK's leading quick house sale company, National Homebuyers. The organisation arranges the fast purchase of property across the UK. The company is also market leading provider of Sell and Rent Back solutions.