Banks' confidence crucial to market

Posted: 06 Jan 2009 05:02:06 GMT

Many analysts are now making predictions for the housing market in 2009 following the start of the new year, and as such there is a wide range of advice available to buyers regarding whether or not the market will bounce back in the next 12 months.

Aside from speculation, though, there are some issues which homeowners must take note of if they are hoping to sell a property for its maximum value.

One of the most important documents recently has been the Crosby report - published late last year - which explains that there is significant demand for homes but that it is banks' nervousness regarding lending that is forcing transactions down.

This is subsequently pushing down prices from homeowners who have to compete for the few buyers which can obtain mortgages, the report added.

Speaking last week about figures showing one in five houses in some areas of Britain have been on the market for the entirety of 2008, Daniel Lee, chief executive at Globrix, said: "The gridlock in the market has been a result of the banks' reluctance to lend and an unwillingness by sellers to lower their asking prices to more realistic levels."

With so few buyers on the market, homeowners can do much to attract as many as possible to their home.

Selling a property online can do much to increase the number of buyers who see a home, and can therefore help a homeowner achieve a higher sale price.

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