New Buyers
First time home buyers have been struggling to purchase a home. With the last few years the housing prices were lowering and the ability to get a mortgage made easier, but there was still trouble with many first time home buyers to actually succeed in purchasing a home.
Now with the restrictions the banks are implementing for borrowers there are going to be many struggles ahead for any of the first time home buyers. In fact the affects of the banks on the new home buyers could be so high that the economy and credit cannot hope to rally.
This year it will be important to see how the housing market performs. The housing prices have been rising in the last decade making it a great time to sell a home that is worth quite a bit more than the person paid for it. Now the housing economy is showing the home prices are depreciating, which could create a windfall effect. For those who can afford to buy it is a great time, but for those who cannot they are most likely losing their homes. HBOS and Nationwide believe that the UK prices are going to remain level for the next twelve months, which could help the economy overall, at least in the UK.