What's going on with the property market!

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MoiMoi

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With Market is now going downward, why are there so many properties for sale out there, is that a sign where market will go down further and people try to rush selling asap? to take out profit before it is getting worse? is that the correct assumption to make? or it takes too long to rent out the property therefore investors prefer to sell their places? any insight anyone?

Thanks
 
Too summarise:

Too many new properties were built. Prices were too high. Interest rates rose making mortgages more expensive. First time buyers could not afford them. Demand fell off. When prices start falling potential buyers put off their purchases because prices may be cheaper in the future.

Now add in the fact that many immigrants are leaving because they are loosing their jobs in construction. This reduces the demand for property (rental and purchase) further.

On top of this the credit crunch will mean that banks will not be giving out big mortgages as easily in the future because they are now suffering from the mistakes of the past.

The result of all of this is a big increase in houses for sale with very few people buying them. The only way to shift these is for sellers to reduce their asking prices.

You can see from the graph (scroll down a bit) in the following link how the volume of property for sale on daft has risen:


http://daftwatch.atspace.com/
 
My memories of the last UK property crash was of streets lined with 'for sale' signs-I don't think we're quite there yet and won't be until the banks start repossesing property en-masse. I imagine many people who fancy a move simply won't bother putting their house on the market due to a belief it won't sell.
 
the inevitable hangover after an outrageous binge! - and i believe the pain will get worse before is gets better
 
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