Housing Prices May Crash - Part 1
In a recent news release bank chiefs have warned that housing prices could crash. Housing prices are seen as too high for the market by 30 percent. For homes that are in that higher mark the prices could crash according to Monetary Fund. There has been a decade long housing boom in the UK.
Britain fears that this boom is at an end and that a pricing collapse is imminent. The Bank of England also warned of an impending mortgage crisis. The mortgage brokers are also seeing some of the same things and are warning their consumers.
The number of mortgages currently available on the market has been reduced by 13 percent since the being of April. This is on the track of a 70 percent reduction in the products since the beginning of summer 2007. In Summer of 2007 a mortgage crisis in the UK began as a spin off from the US market.
David Hollingworth is a mortgage broker with London and Country. He said that this first week in April is one of the most rapidly changing weeks in history. He blames the fluctuation in the market on the credit crisis and the effect it is having on the mainstream mortgages.