The credit crunch is killing off home equity withdrawal. During the first three months of this year, home owners pulled out just 2 percent of personal disposible income through personal loans secured on their homes. Back in 2003, homeowners were pulling out close to 9 percent. Declining home equity withdrawal will feed directly into consumption expenditure. The recession is drawing ever closer
3 comments:
Will we ever see this graph go -ve?
Probably not in our lifetimes....
This is all getting better and scarier as the days go by. As a STR-er I am not sure when it makes sense to even think of buying.
Frank
It's not just the credit crunch that is killing this graph. Prices are falling, which means the amount of equity that people can withdraw is also falling. You can't squeeze blood out of a turnip...
The credit crunch is not being helped by the constently rising costs of just the 'essentials' for peoples everyday lives. Fuel, energy and food are hitting peoples' pockets hard. Soon you'll have to take out a personal loan just to keep up with the mortgage repayments. It makes me laugh when people in the US moan about paying $5 a gallon for fuel...they want to try paying £1.30+ a litre.
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