Property Market Set for Correction

Posted 2008-01-4

According to a new survey by The Motley Fool, a much needed correction in the property market should be seen in 2008. The report estimates that the prevalence of sellers will outweigh buyers; specifically, for every four buyers there will be five sellers. This situation will create more of a buyers’ market. The Motley Fool’s recent survey shows that of those who plan to purchase a house in the future, 38% plan on doing so in 2008 and 34% plan on doing so in 2009.

 

David Kuo, personal finance head at The Motley Fool, states that this situation “will allow many people who have been waiting to move house to finally realise their dream.” However, he explains that, “quite often, people will ask how much they can borrow when they want to buy a property. But that is altogether the wrong question. Instead, they should ask themselves how much they can afford to repay.” Mr. Kuo’s company attempts to help people change the way they look at finance.

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