It is very much doom and gloom in the housing market; the credit crunch has certainly made its mark. Here in the UK house prices have fallen a lot in the last couple of years so this begs the question how much lower can these house prices fall?
I am not personally involved within this industry; I actually provide people with a professional Patio doors service.
In reality the long periods of double digit percentage growth in the housing market were never going to be sustainable. In a way this house price correction could be seen as a good thing. As an example I have two children and it will be far easier for them to get onto the housing ladder now that the prices have fallen back to a more realistic value.
More and more mortgage products are starting to become available; this is possibly due to the fact that various governments from around the world have been pumping fresh money into the markets. From what I have read and heard people who have a sound credit record and who are able to put down a fairly large deposit will have no problems in finding a mortgage at a half decent rate. It is the people who have an adverse credit history who are going to continue to struggle to borrow money. It looks like these lenders have learnt from their past mistakes and are not going to have the fingers burnt for a second time. I would therefore suggest that wherever possible it is prudent to keep up with all of your repayments on the mortgage and credit cards etc.
As for how much further house prices may fall I personally believe that we still have some way to go, in the next twelve months a reduction of another ten percent seems likely. What I am writing here is purely my own beliefs and in reality I have no real experience within this field therefore I could well be wrong.
