Well to add some levity to this one – I have to say I have noticed distinctly the phones a bit busier – not as mad as it has been in the past but there are viewings and enquiries and people still wanting to buy for all manner of reasons, so yes quieter and really a ‘normal’ market.
It will remain to be seen what happens, but prices in the majority of cases cannot drop to far as this goes below the level of the mortgae on the property so while an owner who bought cash can take a hit, anyone mortgaged (99.9%) cannot!
It remains to be seen if the banks will in fact cut their debt and accept an offer below the mortgage owing – at the moment they wont and any repos coming to me arent worth me putting on my site as their debts are over 80% of the bank valuation on them – a valuation with has been revised down by the very bank themself!
So my prediction for what it is worth? Either the repos will be packaged and the debt sold on (doubtful) OR the banks will hold out and bite the bullet in a couple of years time when the BOE tells them to do that!