Property prices, are we near the bottom?

Are property prices bottoming?

there are a few reasons why some commentators feel we are going to start to see recovery.

1. Many New Developments have slashed their prices to stimulate demand: True, having said that, when all sites start to do this in tandem it creates a new low, similar to the paradox of deleveraging in some ways. The current buyer sentiment can be boiled down to this – the people buying are doing so in areas they desire not in ‘areas where property happens to be for sale’ and for that reason we are likely to see further price drops in new build and less in the second hand market. Developers are also starting to chop prices further as they near liquidation, in talking to some they have said that they know various developments are not going to sell so they are talking to the bank about what price is acceptable because the loss is coming one way or the other.

2. Interest Rate reductions have made mortgages a …

Read More