Overseas property market in freefall
News Article Date: Wednesday 15th of April 2009
Overseas home buying is down 80%, according to a property search website.
The steady exit of Britons from the overseas property market has now become a mass exodus.
look4aproperty.com has reported an 80% drop in inquiries about overseas properties over the last six months.
"There have been reports that the overseas market is doing well – but the truth is that market is looking pretty dead. Eighty per cent is a huge drop," said Aaron Turner, CEO and founder of the website.
"People should not be fooled by reports claiming searches are up. They may be, but people are no longer serious about buying overseas – it’s all window shopping.
"On the positive side, we have seen a 28% rise in UK property inquiries over the same period. People are prioritising the roof over their heads rather than buying second homes in France and Spain.
"The lack of equity in the UK is affecting both markets – and with people struggling to get a UK mortgage or to pay off their existing one, they aren’t investing in second properties overseas anymore."
Turner said the rise in UK property inquiries could be the first signs of the British market recovery, but he urged caution.
"It will be another three to four months before we can really say if these are genuine ‘green shoots’. We will have to see what happens before we can start celebrating."