Why have house prices fallen by over 12%

[Sheffy2008 10]

Halifax say house prices have fallen over 12% this year.

 

If you could save 12 thousand pounds on a mortgage, over 25 years you'd pay 24 thousand pounds LESS back.

 

That is alot of money.

 

So, is it worth holding off buying a property until the housing market reaches the bottom?

[BertieBasset 10]

good luck timing the bottom. Maybe you'll be one of the people complaining that you can't afford a house and you're fed up of sealed bids once prices start rising again!

 

Some people are never happy!

[medusa 16]

Define 'bottom'.

 

If everyone knew when the bottom was going to happen and how low prices were going to go then of course nobody would buy until it had got there.

 

However, for most people there's no real way of guaranteeing that you won't be worse off when the prices fall again next month.

 

I'm very lucky in that I bought in the depths of the property doldrums last time round, working on the principles that houses couldn't possibly get much cheaper and I had no problems with house prices going down further before rising again because I didn't plan on selling again.

[Sheffy2008 10]

good luck timing the bottom. Maybe you'll be one of the people complaining that you can't afford a house and you're fed up of sealed bids once prices start rising again!

 

Some people are never happy!

 

I'm very happy..........I have not bought an overpriced asset in the last 6 years.

 

Lets say I buy this month for 150k and prices fall another 12+%, then I lose at least 18 thousand pounds, adding 36 thousand pounds to my mortgage.

 

The monetary experts said only two months ago that fall % values would not reach double digits by the end of 2008.

 

The acceleration of the fall in prices of house prices is catching everyone by surprise.

 

Even me.

[BertieBasset 10]

at some point there'll be a bounce from the pent up demand, are you still going to be happy then?

 

In addition people are withdrawing houses for sale and renting them out, housebuilders have drastically cut their building, at some point demand will outstrip supply...particularly as it appears base rates will be cut and then be on a downward trend before the end of this year...

 

Some people wont take low offers if they think they're giving their house away...perhaps you should have a look at the land registry figures for Sheffield, they show actual completed sales recorded at the Land Registry...bet you wont be happy then...haha

 

I'm very happy..........I have not bought an overpriced asset in the last 6 years.

 

Lets say I buy this month for 150k and prices fall another 12+%, then I lose at least 18 thousand pounds, adding 36 thousand pounds to my mortgage.

 

The monetary experts said only two months ago that fall % values would not reach double digits by the end of 2008.

 

The acceleration of the fall in prices of house prices is catching everyone by surprise.

 

Even me.

[plank 10]

Halifax say house prices have fallen over 12% this year.

 

If you could save 12 thousand pounds on a mortgage, over 25 years you'd pay 24 thousand pounds LESS back.

 

That is alot of money.

 

So, is it worth holding off buying a property until the housing market reaches the bottom?

 

so when you do buy ?, will you be hoping house prices rise then ?

[Sheffy2008 10]

at some point there'll be a bounce from the pent up demand, are you still going to be happy then?

 

In addition people are withdrawing houses for sale and renting them out, housebuilders have drastically cut their building, at some point demand will outstrip supply...particularly as it appears base rates will be cut and then be on a downward trend before the end of this year...

 

Some people wont take low offers if they think they're giving their house away...perhaps you should have a look at the land registry figures for Sheffield, they show actual completed sales recorded at the Land Registry...bet you wont be happy then...haha

 

Yes, 2018 There is a long way to go yet. And with the expected massive interest rate increases later this year and early next year, essential to stop the massive inflation occuring and ruining the UK economy further, those with high LTV mortgages will no doubt be unable to pay their monthly bills, with subsequent reposession, and auctioning of the banks assets (peoples properties) with no reserve.

 

This is happening in the USA...homes last year selling for 90k, now selling for 4k. It is a massacre.

 

Yes, again, people are withdrawing their houses for sale because there are no buyers with the cash to buy, that means prices have to drop..which they are, drammatically.

 

That's why it is a renters market, a MASSIVE oversupply of properties for rent is increasing competition for a few renters, and lowering prices for us in the meantime

 

I like your logic.

[Phylis 10]

We are back to your silly figure again are we. If you had looked more closely you would see that the Halifax quoted 10.9% as an average. Their figures are based on mortgage approvals. What you need to look at is the land registry figures. One look at the figure for Sheffield show that actually we are fairing up better than expected with only a 0.9% drop over the last 12 months mainly due to falling prices od city centre flats. Detached and semi-detached homes actallu rose in value by 4.5%.

 

This shows your figures to be totally wrong.

[Tony 10]

Once again we have another post from our resident bridge dweller that doesn't contain a single fact. Hurrah!

[BertieBasset 10]

I think you're totally deluded...there's common agreement that the next move in interest rates will be downwards, from a BOE base rate of 5% now, people are expecting base rates to fall to as little as 3.5% towards the end of next year...You clearly don't have any understanding of economics and it appears you obviously don't understand what the term "inflation" means either. Why don't you go back to your cave and carry on thinking that the earth is flat...

 

Yes, 2018 There is a long way to go yet. And with the expected massive interest rate increases later this year and early next year, essential to stop the massive inflation occuring and ruining the UK economy further, those with high LTV mortgages will no doubt be unable to pay their monthly bills, with subsequent reposession, and auctioning of the banks assets (peoples properties) with no reserve.

 

This is happening in the USA...homes last year selling for 90k, now selling for 4k. It is a massacre.

 

Yes, again, people are withdrawing their houses for sale because there are no buyers with the cash to buy, that means prices have to drop..which they are, drammatically.

 

That's why it is a renters market, a MASSIVE oversupply of properties for rent is increasing competition for a few renters, and lowering prices for us in the meantime

 

I like your logic.

[basshedz2 10]

That's why it is a renters market, a MASSIVE oversupply of properties for rent is increasing competition for a few renters, and lowering prices for us in the meantime.

 

This lowering of rental prices that you're banging on about, is this the same lowering of rental prices that has seen the average rent of a 3 bedroom terrace in my area rise 20-30% in the last year?

[Sheffy2008 10]

I think you're totally deluded...there's common agreement that the next move in interest rates will be downwards, from a BOE base rate of 5% now, people are expecting base rates to fall to as little as 3.5% towards the end of next year...You clearly don't have any understanding of economics and it appears you obviously don't understand what the term "inflation" means either. Why don't you go back to your cave and carry on thinking that the earth is flat...

 

This isn't America. They can do that.

 

We can't.

 

The BoE know this.

 

Double digit interest rates by mid 2009.

 

What will that do to your and Phyliis's and other home owners monthly repayments?

 

It's a shame but massive repossession is on the way, far outdoing anything the UK has seen before.