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Why my house wont sell?

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“Why my house wont sell?”

Is it something wrong with my house? May be the agent doesn’t do his job well? Or the price is wrong? Or the area?

Don’t worry, it’s not your fault! Nothing is wrong with your house. It’s the current market situation which stops homeowners from buying and selling houses.

Housing market have been very slow impacted by the Global Financial Crisis, where house prices are falling and banks are not lending.

House prices have been falling since 2009 and lately fell again by 0.5 per cent in February 2012 according to Halifax.

And still house prices expected to fall further in anticipation of possible double-dip recession, as predicted by different experts.

So why my house won’t sell? If I sell my house at a lower price and buy a house at a lower price, than falling prices shouldn’t matter? Yes, in theory, as long as you can find a buyer for your house.

However a lot depends on the ability of banks to lend money. This will affect the ability of first time buyers to get their first house and in turn allow homeowners to move up the ladder. And this is a big problem! Banks are not lending money, as they used to.

Bank of England’s monthly mortgage approval rate dropped significantly from 129k in 2006 to 58k in January 2012, as reported by MoneyWeek.

 With such a low number of mortgage approvals, people are unable to buy houses and  that’s why houses wont’ sell.

 Is there a way out? Yes! Even if the traditional housing system doesn’t work, there are new creative technics available on the market, which allow you to buy and sell houses in a more flexible way and not to be dependant on the banking system.

Best wishes.