House prices poised to free fall
By Roy Cokayne
House sellers must brace for a 40 percent drop in selling prices from the highs of last year, to price levels last seen two years ago.
This was the warning issued yesterday by Lew Geffen, who has about 40 years' experience in property and is the chairman of Sothebys International Reality. His warning comes as banks have tightened up on credit and are cutting costs to cushion the impact of rising bad loans on profit.
When the big property players are advising to drop your price, you know the crunch has hit the housing market. Interest rate pressures could cause you to lose your house. Make certain that the home loan that you have is the right one for you. If you have outstanding debts, now is the time to consolidate them, if you have already started missing payments, debt management may be necessary. The market will get very soft before it hardens. If your finances are in order you should be able to get your head down and ride the storm out.