Signs that distressed sale prices may increase

Grovelawn Financial News 29/01/2009

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Housing market may have hit bottom

There are clear indications that prices on distressed housing stock most usually repossessions, have started to rise. The property investment advisors Assetz have filed reports stating that they believe that this is the first clear sign that the housing market may have reached the bottom. House prices at auction sales have levelled out and they feel this is a sign that things may well begin to improve.

Many house builders are running out of competed homes and others are renegotiating their banking covenants to a more achievable level which is allowing them to sell properties as a more reasonable price rather than at cost. New homes will only be built once sale prices are guaranteed to be at a profit, this is likely to be some time ahead. Figure released to show house prices are always some months behind and any one waiting for two consecutive periods of low pricing will find they have missed the boat by about 6 months.

Chief Executive of Assetz, Stuart Law said “If the distressed property market had a house price index, it would have already reached the bottom and there are clear signs that these prices are beginning to turn upwards. There are multiple bidders for much residential distressed property – an early warning indicator that the wider market trend will change in the near future. Savvy investors know they will secure the best price while consumer sentiment is at its worst, not when the press is reporting a market recovery”

← Woolwich offers new low rate fixed mortgage | News For January 2009 | House prices rise, BoE base rate lowers →

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