Who To Blame For Falling House Prices
Even though house prices have been seen to even out, there have been experts who have been enthusiastic to determine what has been the cause of falling house prices of late – whilst looking for indicators of what could damage prices in the future.
With the Coalition Government looking to streamline the jobs which are in the public sector to cut the deficit, it could be said that the mass redundancies which are going to be made could be good for those looking to emerge on the property ladder.
Hometrack research outlines how areas where the workforce are strongly reliant on public sector entities, particularly cities in Wales, are below national averages which are seen for house prices – a divide that is widely expected to get worse.
The uncertainty in the job market isn’t helping consumer confidence, and many are worried about their job security in their future, and what this would mean for retaining the property they own. However, another theory for the steep decline in asking prices has been the negative media coverage which has dominated newspapers and news channels alike.
Surveyors have said that price erosion has recently become a factor in buyers who have believed that asking prices are too high for the current market, with lower offers being made to prospective sellers as a result.
An intriguing prospect which is shared by many lenders and other financiers is that a housing sector free of constant media scrutiny might perform better and result in more transactions between buyer and sellers. Amongst the industry itself, the advice for those who might be looking to make one of these worthwhile investments is clear: take any speculation which is seen with some scepticism, and ensure you get specialist advice before jumping to conclusions.