House prices doom and gloom

[cloudybay 17]

Soooooo bored of all this house market doom and gloom. Many years ago you bought a house, lived in it for several years, didn't brag about the equity. You just bought it, and moved on when you could/wanted to, and if you made a few quid it was a bonus. I think a lot of the problem is people living in the 'boom times' started saying they've doubled the price of their house in six months or whatever, and everyone tries to compete, and the market continues to spiral.

 

Let's get back to the good old days!! I bought my first house for £35,000. It seemed a lot then, but what a bargain!

 

 

Quite. Buy a house as a home rather than as an investment.

 

The lower house prices fall the better. At least then the ordinary man on average wages will be able to afford one.

[Mr_Squirrel 10]

Soooooo bored of all this house market doom and gloom. Many years ago you bought a house, lived in it for several years, didn't brag about the equity. You just bought it, and moved on when you could/wanted to, and if you made a few quid it was a bonus. I think a lot of the problem is people living in the 'boom times' started saying they've doubled the price of their house in six months or whatever, and everyone tries to compete, and the market continues to spiral.

 

Let's get back to the good old days!! I bought my first house for £35,000. It seemed a lot then, but what a bargain!

 

 

Couldnt agree more, the quickest way to send interesting people to sleep is to drone on about house prices.......

 

As for profit, it dosent really work that way in the real world, what you 'make' in a period of time in one house, then move, presumably the second house will have increased in price by the same (or similar) margin, therefore you are no better off........its just numbers.

 

Personaly, i dont care what the value of the roof over my head is worth in money terms, its my home, so to me, its priceless.

[KomPLeX 10]

My guess is that prices may drop by a maximum of 20-25% by the end of this year but then the market will level out for a while then by the summer of 2010 rise back to similar prices of around 12 months ago.

 

Sorry if this does send you to sleep but just wanted to point out that a 20-25% drop in a year would far exceed the 80s crash.

 

The Halifax figures for average annual change:

 

1989 +20.8% £68,946

1990 0.0% £68,950

1991 -1.2% £68,130

1992 -5.6% £64,309

1993 -2.9% £62,455

1994 +0.5% £62,750

1995 -1.7% £61,666

1996 +4.5% £64,441

 

http://www.hbosplc.com/economy/HistoricalDataSpreadsheet.asp

[Mr_Squirrel 10]

I meant in total, not 20-25% in a 12 month period, but yeah, i get ya poizzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

[shanes teeth 10]

You're living in Cloud Cuckoo Land if you think that, Nick

 

StarSparkle

 

No he's exactly right.My daughter and her partner are looking for their first house - there are plenty on the market and there are plenty of people looking at the same houses as them.

Most people in conversation would say they don't beleive a word the papers or government tell them, but when it comes to impending recession or global warming they seem to beleive every word.

[*_ash_* 88]

is one of correction as house prices have rose at a ridiculous rate for the last 15 years, and all that is happening is that the housing market is slowly correcting itself to the real price.

I agree with part of this. But houses won't reach their real price ever again, because mortgage lenders will just move the goal posts to how much they will lend/or how stupidly long that you stretch a mortgage out for. (unless there was a total saturation of the housing market or complete global crash)

I feel people should only be allowed to own a maximum of two houses.

I don't get why this would solve the problem.

Greedy property developers have made it impossible for first time buyers to get on the housing ladder

I don't want to be hypocritical, because I often use the term 'greedy property developers', but in truth, they want to sell properties, not sit on them. To allow such prices wouldn't be possible if mortgage lenders didn't dictate/take the p!$$ (delete as approp) with what people could borrow.

as someone who isn't yet on the ladder i think house prices are a p1$$ take and hope they carry on tumbling till they get to a reasonable price

Whilst I would agree with this if I was speaking in a selfish manner as someone who wouldn't mind stepping on the ladder, it would mean a lot of people that I know, who have bought recently would all be in the ess haytch eye tee. Not to mention thousands and thousands of people that have also joined the ladder, in an effort to make the best of their lives.

[crookesey 635]

There have only ever been two elements that trigger movements in the property, money, equity and commodity markets, these are greed and fear.

 

It is quite interesting reading some posts by folk who appear to consider ordinary home owners as money making pariahs on one hand, but wouldn't mind picking up their homes at knock down prices on the other. For whatever reason, they have been too frightened to step onto the property ladder in the past but reported falling prices has let greed get the better of them. I trust that as and when they come around to disposing of their 'bargain' properties that they will stick to their principles and 'sell them cheap'.

 

I was talking to a valuer of one of Sheffield's leading firms of estate agents who told me that one of their branches had recently sold one property in one particular week compared to 20 in the corresponding week last year. So dream on you bargain hunters, sellers will generally only discount their homes if the folk that they are buying from do the same. Just look at how few 'For Sale' boards there are, there cannot be a total house price crash if there is hardly any housing stock on the market.

[Tomataheeed 10]

So... with the house prices coming down... surely the rent prices should also come down?

 

Quite the opposite I'm afraid. Prices rise, rents fall. Prices fall, rents rise. Ultimately to do with demand I guess - if people stop buying, they have to start( or continue) renting.

[StarSparkle 10]

No greed is not good.

 

Indeed - greed is never good

 

StarSparkle

[StarSparkle 10]

my personal view of the housing crisis, is one of correction as house prices have rose at a riddcolous rate for the last 15 years, and all that is happening is that the housingmarket is slowly correcting itself to the real price. I feel people should only be allowed to own a maximum of two houses. Greedy property developers have made it impossible for first time buyers to get on the housig ladder

 

It's those who 'buy to let' who have caused a lot of the problems for first-time buyers - and others - trying to buy a home of their own.

 

We were trying to move up to live in Leeds (yeah, I know, I know... ) a few years ago for family reasons - and, although we're not first-time buyers, we were still beaten on price for every house we went for, principally by people who were 'buying to let'.

 

In the end, we had to accept we couldn't afford to buy a halfway-decent house in Leeds due to this 'buying as investment' crap.

 

Makes me sick, it really does. Utter selfishness and greed.

 

StarSparkle

[StarSparkle 10]

No he's exactly right.My daughter and her partner are looking for their first house - there are plenty on the market and there are plenty of people looking at the same houses as them.

Most people in conversation would say they don't beleive a word the papers or government tell them, but when it comes to impending recession or global warming they seem to beleive every word.

 

I don't believe a word the government says about ANYTHING, my dear Lying is second-nature to all governments, not to mention the media

 

I use my eyes, my intelligence, what I see happening in the world and to the world all around me. The evidence is there for anyone with eyes to see. It has been obvious for decades that the western lifestyle has been mortgaging the future.

 

That mortgaged future is here now - and we all have to start paying the bills

 

StarSparkle

[shanes teeth 10]

The evidence of my experience is that people are out there wanting to buy houses as homes not as investments.The bottom has fallen out of the buy to let market for various reasons. A lack of demand from investors for terraced houses/flats will just see prices fall to realistic levels which will encourage first time buyers which in turn will result in a buoyant market.

You never know StarSparkle ,you may yet be able to afford a "decent" house in L##ds.We can all try to reach for the stars !