Some slightly conflicting signals emerge from the mortgage lending statistics this week casting doubt on the immediate direction of house prices and the prospect of owners achieving quick sales on their properties. On the one hand the number of mortgages granted improved again to 45,000, but the actual money lent showed a small decline.

The explanation would appear to be that the down payment required by lenders, many requiring 25%, on top of the recent decreases in house prices has caused a reduction in volume even with an increase in transaction numbers. If this is true then the recent improved confidence about the bottoming out of house values does seem acceptable.

One further explanation could be what might be classed as the “bargain buyer” effect. Once there is a general consensus that property values have reached the bottom, buyers are encouraged back into the market to achieve a bargain. Some of these may be investors or cash buyers who have no need of a mortgage. In other words there may be an important number of property sale transactions which simply are not included in the mortgage approvals figures. These buyers will of course try to cash in on those wanting or needing to Sell House Fast.

Such bargain hunters will by nature seek out the best priced property in given areas, looking more for value for money than desirability. They will also barter with vendors to secure the best possible price. The effect of this is that a lot of the cheapest houses will be unavailable potentially in a very short space of time and buyers coming along in a few months time may find a shortage of very cheap houses. That would be the time I’d decide on if I wanted to Sell my Property fast.

The likely consequence is that in a few months time the mass of available properties comprises more of the stubborn sellers, those who decided not to reduce selling prices to encourage a sale but who rather stuck to their guns and decided to wait out the market issues.

This may become noticeable in a short term upward improvement in property prices followed by the much favoured gradual increase in line with inflation.

In any event the figures do now seem to indicate clearly in the direction of a stabilised housing market. The feeling is that bargain hunters will now have to get in quickly and complete a Quick Property Sale before a price recovery gets going in earnest. Sellers will also begin to be confident about the probability of achieving good asking prices and will be more inclined to turn away very low offers.

As with any market, prices are set by supply and demand. As these levels settle there can now be said to be clear signs that the price falls have peaked and that the market has at least stabilised.