House prices doom and gloom

[crookesey 620]

Whilst listening to a financial analyst on the radio predicting that house values will fall by as much as a third the following occured to me.

 

If my house was worth £300,000 last year and is now only worth £200,000 the £600,000 property that I couldn't afford last year should now value at £400,000 thus saving me £100,000.

 

IMO the problem is that many people constantly re-mortgaged when their deals came to an end and borrowed more every time their property increased in value to continue living beyond their means. They now find themselves slipping into negative equity with the almost certain prospect of huge mortgage repayment increases when their current deals come to an end.

 

So folk who didn't continually borrow more and more money against their property can now probably afford their dream home. However those who treated their homes as a piggy bank can now reflect on their past life styles at their leisure.

[nick2 10]

They were saying on Question Time last night that a lot of this recession is the invention of the media, they are convincing us everything is doom and gloom and it's become a self-fullfilling prophesy.

[DaFoot 10]

Yup, I'm hoping my house shopping next 6 months will be less daunting because of all this. That is of course assuming that sellers will actually accept a lower price than they are asking...

[the_rudeboy 12]

They were saying on Question Time last night that a lot of this recession is the invention of the media, they are convincing us everything is doom and gloom and it's become a self-fullfilling prophesy.

I tend to agree. IMO the media are making things appear worse than they really are.

[nick2 10]

I tend to agree. IMO the media are making things appear worse than they really are.

 

If everyone just sits-tight and rides it out I think they will be ok, why sell your house now if it's worth less than you paid for it, stay in it and wait for the value to go back up again, which it will eventually.

[StarSparkle 10]

They were saying on Question Time last night that a lot of this recession is the invention of the media, they are convincing us everything is doom and gloom and it's become a self-fullfilling prophesy.

 

 

Well, they would say that, wouldn't they - to paraphrase an old cliche

 

StarSparkle

[nick2 10]

It was the audience that were saying it, not the politicians.

[jonhanson 10]

To be honest in my area I have noticed house prices have all gone up in the last 6 months, quite alot, meaning if house do crash I wont go into negative equity.. We have been living in our property almost 1 yr and it has risen by around 25%. Thats going on the house prices of neighebours houses for sale, and sold in the last 6 months. Each time a new one comes up for sale the price keeps rising and there still selling.

[StarSparkle 10]

It was the audience that were saying it, not the politicians.

 

So? A lot of people seem to think if they close their eyes and ignore the evidence and pretend it's not happening, then it'll all go away...

 

StarSparkle

[Cynic 10]

Sheffield tops the list for falling prices too at 17%! (link) I guess that is mainly due to all the city centre flats that are having thousands slashed of the price due to over supply.

 

I bought at the beginning of last year which was pretty much precisely the worst time to buy, not a flat though which is something I guess!

[nick2 10]

So? A lot of people seem to think if they close their eyes and ignore the evidence and pretend it's not happening, then it'll all go away...

 

StarSparkle

 

Or if enough people stay calm and just adjust they lifestyle slightly it won't be as bad as everyone thinks (or some people want) it to be.

[PuressenceUK 10]

Well doom and gloom for the house owners is amazing for those wanting to get on the property ladder for the first time, it's not all bad.