UK Market Set For 'Hard Landing' : Rightmove
The British property sales website Rightmove is seeing the stalemate between buyers and sellers developing into a crash. "Rightmove, which claims to advertise about 50% of all homes for sale in Britain, said the figures show both the volume of property transactions and the annual rate of increase heading for their worst levels for a decade."
"It said the data undermined arguments that the housing market was undergoing a soft landing. 'We anticipate..little movement upwards until buyer affordability improves. With sellers not prepared to lower prices by enough to make properties more affordable, a gentle fall in prices would mask a collapse in the number of sales and a 'hard landing' for the market as a whole, it argued."
"'Sales are only likely to recover if buyer affordability improves through lower prices, rising wages, or falling interest rates,' a spokesman said."
"Miles Shipside, the chief executive of Rightmove, warned that people selling houses were often unrealistic about the value of their homes. 'We are heading for a nasty low that sellers seem to be oblivious to,' Mr Shipside warned. 'House prices have risen so far that they are no longer able to pay through the nose."