Impact of the financial crisis on buying a property

The fallout of the financial crisis has driven a dramatic shift in homeowners buying decisions and has had a significant impact on the global property markets’ recovery.

The latest figures from a recent survey carried out by Simplyzigzag.com – an online estate agency – reveals an assessment of the financial crisis affecting homeowners’ buying decisions.

According to the poll, almost two thirds (60%) of homeowners feel the financial crisis affects their buying decisions, with 33% of those waiting for stabilisation before re-entering the market.

Achim Amann, Director at Simplyzigzag.com, said: “I think that before the financial crisis, there was a general shift in homeowners buying decisions, as properties and assets continued to rise the fastest in over two decades and buyers were either being priced out and properties were not being sold. The financial crisis had the effect of accelerating this trend – reducing property prices but creating psychological havoc in buyers’ minds.”

In turn, a certain number did not believe the financial crisis affected them. 15% polled gave a straight ‘no’; 13% answered ‘not really’ and a further 12% said ‘not at all’.

Raya Mamarbachi, Director at Simplyzigzag, added: “There is a segment of the market that has not been affected by the financial crisis – mainly people sitting on a lot of cash, foreigners or those that see the housing market as cyclical – for a small number there is no reason not to buy.”

The Simplyzigzag.com poll was conducted via the company’s website over an 8 week period from 1st of July till 30th of August.