One of the main factors affecting the housing market at this moment of time is obviously the world economic crisis because who but the very rich are going to fork out precious money to invest it into bricks and mortar. People are afraid to spend money when they may have lost their jobs or be in fear of being about to lose them. The money that they have will be needed to ride out the storm as it were, hoping that the storm will not last that much longer.
Although having said all that, if you did happen to be among the lucky few who do indeed have some spare cash then this would no doubt be a very good time to buy a property as there is more guarantee that your money would remain safe there in the bricks rather than in a bank where who knows what is going to happen! As there are cheap properties to be found at the moment it would surely be a safe and sure investment for your money because the day the housing market returned to some sort of normality your property would have without a doubt risen in price and thus your investment as well!
It is definitely a buyers’ market at the moment as there are some really good bargains to be had these days due to those unlucky people who are no longer able to keep up with their mortgage payments and so have to sell off their properties for whatever they can get. No longer can property owners think of making a profit on the sale of their property but rather they will think themselves lucky if they can just break even. Then there are the construction companies who having witnessed the property boom of the early 2000’s decided to join in but unfortunately a little too late and found themselves immersed right in the heart of it all just as the property market started to crash. Most of these properties have been taken over by the banks now and so are going for really low prices.
One could also say that greed affected the housing market because at the end of the day more properties were constructed than were needed. The construction companies in their eagerness to make more money ended up producing more product than was in demand and when that happens it only follows that the product will lose in value. The consumer has so much to chose from that he will end up looking only for the best bargain and so in an effort to compete and sell the constructors found themselves having to lower and lower and lower their prices until the point that instead of having made a profit they have all sold at a loss!