Categorized | International

Real Estate Sales in England Hit Lowest Level in 5 Years

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Residential real estate sales in both London and Wales have fallen to a new five-year low. Just forty percent of the five hundred towns between both countries posted a rise in home sales in 2011. The two countries haven’t experienced such a decline in pricing since 2008.


Certain regions of both England and Wales performed far better than others. The northern towns of both areas posted stronger increases, which is actually the opposite of what was seen in 2010. Aside from the northern region, the West Midlands area also posted strong increases.


Although the prime sector of the London market has performed consistently well over the years, the city as a whole had fewer hotspot areas than any other town or city in both countries. Prices in London dropped by six percent.


Those towns that did post increases in the past year posted weaker numbers overall than in previous years. Residential real estate prices, in general, declined year over year.


One of the primary reasons why the housing market did not perform up to the standards set by previous years is that many potential homebuyers are hesitant to buy given the current state of the overall economy.


With the debt crisis once again looming, many fear that the market may collapse, and that housing values may fall dramatically. Homebuyers are also struggling to come up with the required minimum deposit needed to secure a mortgage loan. As such, there are fewer potential homebuyers in the current market than there has been in prior years.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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