How far will Sheffield house prices drop?

[Cyclone 10]

If people buy at the level they can afford then most will be ok. Its overstretching and having multiple x salary mortgages that mainly leads to repossession.

 

Prices in this area are starting to rise again - good or bad news depending on one's situation. This website gives information on house sales.

http://www.ourproperty.co.uk/

 

That the government and media is managing to spin rising house prices as good for anyone is one of the modern mysteries of the world.

Rising house prices, particularly above the rate of general inflation are bad news for everyone in the country in the long run.

[chem1st 10]

If people buy at the level they can afford then most will be ok. Its overstretching and having multiple x salary mortgages that mainly leads to repossession.

 

Granted, but an x salary mortgage when you've lost your job, have less income and higher outgoings cannot be sustained forever. And along comes 2010, homelessness, council housing priority, a long wait and even less housing for those that need it. Maybe pushing up house prices in the short term, but not doing anybody any favours, except for those who want to sell sell sell and blow their $£€ before they pop their clogs.

[Dimitri 11 10]

This thread started with predictions of house prices halving, well they haven't. Most properties are mortgaged, and a lot of the higher geared lending shows the borrowers as being in negative equity, so they are stuck where they are until a recovery occurs.

 

Yeah but you can't suddenly draw a line under proceedings and say that's it, the crash hasn't happened. The problems facing the economy and housing market are still there, if not worse than they were before.

 

Sure there will be a few bank reposessions and bargain deceased estates, but not by any means enough to satisfy the folk that didn't dare buy when things were good.

 

Repossessions don't just come onto the market at a lower price and the rest of the market stays the same, they act to force downward pressure on prices, particularly if there are a large number or repos. If a load of repos come onto the market for x amount cheaper than your similarly priced property then the chances are you will need to lower your price to sell. Similarly if only a few repos are coming onto the market then they will have a far smaller effect.

 

The ultra-low interest rates have acted as a temporary stop gap but once they rise along with taxes unemployment then repossessions should increase accordingly.

 

They are now looking for bargains on the back of other folkes misfortune.

 

Pot Kettle Black.....

 

We are using the recession to upgrade our home, during the boom tradesmen were very expensive, if you could get hold of one. Not so now, they are out looking for work, and cost far less. We have been amazed at the value around, we have just had our gutters,facias and soffits replaced in UPVC, 120 feet in all for just over £2K and that included £575 for the scaffolding.

 

Let's be honest though, nobody is going to turn down a bargain if they see one and there's nothing immoral about it IMO unless the item has been stolen.

Edited February 8, 2010 by Dimitri 11

[crookesey 636]

Yeah but you can't suddenly draw a line under proceedings and say that's it, the crash hasn't happened. The problems facing the economy and housing market are still there, if not worse than they were before.

 

 

 

Repossessions don't just come onto the market at a lower price and the rest of the market stays the same, they act to force downward pressure on prices, particularly if there are a large number or repos. If a load of repos come onto the market for x amount cheaper than your similarly priced property then the chances are you will need to lower your price to sell. Similarly if only a few repos are coming onto the market then they will have a far smaller effect.

 

The ultra-low interest rates have acted as a temporary stop gap but once they rise along with taxes unemployment then repossessions should increase accordingly.

 

 

 

Pot Kettle Black.....

 

 

Let's be honest though, nobody is going to turn down a bargain if they see one and there's nothing immoral about it IMO unless the item has been stolen.

 

Not selling, not buying, so why am I a hypoctite? Perhaps because I am content with my lot, keep your fingers crossed for a knock down bargain, but it's not going to be ours.

 

Ten bob economists are not going to sort this mess out, loads of folk would love to steal our detached home, with landscaped gardens and many improvements, the trouble is that it's not for sale, and we're not skint, over to you flower.

 

We came from an era when you didn't take on more than you could afford, a lot of property with, wait for it, a staggering £19K mortgage on it, we are recession proof. The problem is that we couldn't now afford to buy our property on our current joint incomes.

 

I'm not making light of some folkes financial positions, but my wife and I are running 8 & 9 year old cars, we haven't plasma screened yet, we are tempted, but only when we have the surplus funds to afford it.

 

It's just our way, what recession?

[Cyclone 10]

Sure there will be a few bank reposessions and bargain deceased estates, but not by any means enough to satisfy the folk that didn't dare buy when things were good. They are now looking for bargains on the back of other folkes misfortune, in the main they will not succeed.

There's a whole generation of people who've never had the opportunity to buy whilst 'things were good'. And if prices continue to rise there will continue to be a generation of people the majority of who cannot afford to purchase a house. It's nothing to do with 'daring', it's all to do with the relative prices of housing compared to income.

[Dimitri 11 10]

Not selling, not buying, so why am I a hypoctite?

 

You were slagging people for taking advantage of other people's bad fortune (by buying repossession properties) but then basically saying you were taking advantage of other people's misfortunes (paying builders less money because they are more desperate for work). That's basically what I was saying but I also said that both are normal and acceptable, you take what you can get and pay the going price - as long as it's all upfront and you are not conning anyone, there is no problem.

 

Perhaps because I am content with my lot, keep your fingers crossed for a knock down bargain, but it's not going to be ours.

 

Ten bob economists are not going to sort this mess out, loads of folk would love to steal our detached home, with landscaped gardens and many improvements, the trouble is that it's not for sale, and we're not skint, over to you flower.

 

We came from an era when you didn't take on more than you could afford, a lot of property with, wait for it, a staggering £19K mortgage on it, we are recession proof. The problem is that we couldn't now afford to buy our property on our current joint incomes.

 

I'm not making light of some folkes financial positions, but my wife and I are running 8 & 9 year old cars, we haven't plasma screened yet, we are tempted, but only when we have the surplus funds to afford it.

 

It's just our way, what recession?

 

It sounds like you are sensible with your money and yet you say you couldn't afford to buy your property now even on your current joint incomes. I think this says it all about the housing market as I am betting the area you live in hasn't changed massively for the better since you first bought? Prices have gone up ridiculously over the past 10 years or so and personal incomes haven't kept pace with them.

 

There are going to be a lot of people who are not in the same boat as you though and who are going to struggle over the coming years with their debts. While they may in the end have taken on more they can afford, they won't have known that at the time and weren't being greedy as such, so I do feel sorry for them. Saying that, I'd still show no mercy with offers on their property though .

[Dimitri 11 10]

House prices (agreed sales) in the UK fell in February for the 1st time in 10 months according to the Nationwide:http://www.nationwide.co.uk/hpi/historical/Feb_2010.pdf.They fell by 1.0% compared to January. Hopefully this will be the start of a slide in prices but it's too early to tell so we will have to see what the coming months bring.

 

The Land Registry also released their monthly update today and that showed prices in January (completed sales) rising by 2.1% nationally but only 0.1% in Sheffield. http://www.landregistry.gov.uk/

[chalcedony 10]

Ive had a casuall look latley without intention of buyingnin the back of the paper to see how much houses are now...and was suprised but you can get a flat for £65,000 £70,000.now a days...seen houses at £90,000

[thomas helm 10]

My partner and I are hoping to move next year (if we can sell our house). I am wondering how long it may be worth waiting for. I am thinking maybe the end of next year.

Any views?

 

House prices will stay around these prices ,, they`ve topped out and falled a bit, in my opinion they will rise slightly in summer, fall winter. But remember a property is only at its value when somebody will pay the money for it , and not untill . Its ok your friend / agent saying its worth 200.000k when only 1 person / couple will only buy at 150..000k do research and have your home in the best league it can be in..

[ukdobby 225]

Ive had a casuall look latley without intention of buyingnin the back of the paper to see how much houses are now...and was suprised but you can get a flat for £65,000 £70,000.now a days...seen houses at £90,000

 

Of course there's properties at these prices,depends where you want to live.

[Dimitri 11 10]

The Halifax has also reported a fall in house prices in February, this time by -1.5% http://news.google.co.uk/news/more?um=1&cf=all&ned=uk&cf=all&ncl=dztlJQcI1fqw7gM0y8ArpNjKqNqwM.

[Dimitri 11 10]

Completed sale prices were down -0.3% nationally and -0.1% in Sheffield for February. http://www.landregistry.gov.uk/. Completed sales in February were probably mostly agreed late November early December so the price rises had begun to peter out by the end of last year. March's LR index might well show a rise though as a lot of the sales were likely to have been agreed in December when people were rushing to beat the end of the stamp duty holiday.

 

It will be interesting to see the March agreed sale price indexes from Nationwide and The Halifax. They should be out next week or the week after. They both showed falls last month but we are now heading towards the peak time for property sales so we'll have a clearer view of whether the Haliwide's Feb's figures were a blip or the start of a trend reversal.