Rightmove have said we have hit the bottom and the only way is up. Brave comments I must say! Here is why they think that:

Asking prices rose from sellers 5 out of the last 6 months
Estate agents on their network that think prices will rise out number the agents that don?t
The number of houses being put on the market has jumped 20% hence sellers think they now can get a good price
Asking prices have risen 7% since the start of the year

It is very interesting. It is Rightmove figures that really represent the sentiment of property prices. Land Registry record actual sales which have a time lag and they never widely report the number of transactions. The number of transactions are way down at 75%.

So there are one quarter of the amount of sales compared to last year. And if we really look at those mad enough to sell last year and the start of this year have to be desperate sellers.

So this is what is going to happen.

Frustrated sellers who wanted to sell but held off are going to flood in to the estate agents requesting their properties to be sold.

Frustrated buyers who wanted to buy will find something they want to buy and go to their bank for a mortgage.

The banks will have loads and loads of requests for mortgages (i.e. mortgage applications) and the bank will cherry pick the best.

One bank will relax their lending policy (Northern Rock perhaps?) and will gain massive market share.

The other banks will start to compete and then we have a competitive mortgage market and thinks will bounce back to normal. How long this will take who knows.

One thing is banks need to make some money and FAST! If you borrow £100k over 25 years the bank makes £200k GROSS PROFIT over this 25 year period.

They really want to lend to you it is just the shareholders of these banks are licking their wounds. Once these big shareholders press the green button, and it may only take one shareholder from one bank to do this i.e. ONE person, the rest of the banks will follow.

So if that one person can hear me please PRESS THE BUTTON! Start lending and lets see business go back to normal. Assuming they cannot hear me (which is a safe assumption) just keep an eye out on the mortgage products.

Visit the portals which offer mortgages and see if any new preoducts have come out which look risque and hit them with an application.

Also to celebrate this announcement of Rightmove I am offering my products at silly prices until the end of this week:

Item No	Product	Price
1	7 Audio CDs, 1 Data CD, 3 DVDs & Calculator Package	£99.99	Buy Now
2	Lifetime access to client only seminars	£99.99	Buy Now
3	MP3 Player with headphones and calculator pre-loaded will all the audio and data	£59.99	Buy Now
4	Lifetime Membership of propertyhotspots.net	£99.99	Buy Now
5	4 book package	£59.99	Buy Now
6	All items above + membership to the Ahuja Group	£499.99	Buy Now

Or call us on 0870 990 3205.

Ajay
Posted on: 21st Jul 2009

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