Fears Mount in UK with Huge Supply of For-Sale Homes

Somethings gotta give as homes begin piling up and approval of mortgages are a trickle.

Inquiring minds are looking at new real estate numbers coming out of the Britain and it is not any prettier there than here. It’s because the numbers released today show that the number of properties for sale is more than double the number of mortgages being approved:

The latest housing survey from property website Rightmove suggested there were 1.3 million properties for sale, but just 530,000 mortgages approved last year. It blamed the gap between supply and demand on a lack of affordable mortgage and concerns about the economic outlook among buyers. It suggested that some buyers who were unable to sell have taken their property off the market until it begins to pick up.

Miles Shipside, of Rightmove, said: “Not all properties marketed have to sell or stay on the market, with a percentage being withdrawn if they fail to find a buyer. “There is still a clear imbalance between supply left on the market and demand even taking this into account. Demand is restricted by mortgage availability and potential buyers economic circumstances.”

However, sellers are refusing to lower their asking prices, boosting them by 3.1 per cent this month to an average of £230,000, according to survey. Mr Shipside explained: “The number of forced sellers and repossessions are the key factor that drives down prices, and to date lenders have shown considerable forbearance in how they manage arrears and are wary of flooding some markets by putting lots of repossessions up for sale.”

Don’t you just love that first sentence of the last parapgraph…”sellers are refusing to lower their asking prices”. How quaint. In about 6 months we will see if sellers will have changed their collective attitude?


One Response

  1. the entire last paragraph is ridiculous.
    the lenders can show all the forbearance they want.
    when they start plugging the dike, they are going to run out of fingers first.

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