property prices soar

Property prices seems to me on the march again. Not downwards, but there are rumours that sellers are beginning to play hard ball again. Estate agents are already looking mixing the snake oils that was placed under the desk during the recent down turn.

The media squeeze on the bank is starting to make the bank waiver a little and the lending taps for homes buyers are beginning to open again. The Month on July has seen a 23% rise in new mortgages as the housing market received much needed boost. Even though total monthly mortgages is still far below the time of the good days of free month it's still a positive sign. Another signal is the fact that the number of repossessions are falling which is a positive. However there are still growing un-employment which means less and less people will meet the lending criteria which then limits the amount of people that can obtain a mortgage from the bank. (The circle of life) Hopefully what the bank is hoping is that by lending to buyers this another way of putting cash into the economy which will hopefully transform into services, or work.

The obvious fear is this newly injected money simply get placed under the mattress as people tend to save and not spend during the tough times. And when the media doesn't play what's on the song sheet the government hands out then people react to the negative stories.

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