How far will Sheffield house prices drop?

[sham71 10]

Good advise. all sit on YOUR hands and money and see where the economy goes!!!!

 

If YOU all do this I can kiss goodbye to MY job, home and any money I earn.

 

 

I just edited your quote so that it reads as you actually mean it.

 

That is after all what you have been trying to do on here for the last year - save your skin by trying to get other people to lose their money.

 

At least Tony had the good grace to give up in the end.

[pete_jim 10]

This thread is about how far prices will drop. You said that lots of sale signs were a sign that things were picking up.

 

Then you say that the price they sell for is meaningless.

 

I think you may be on the wrong thread....you want the 'when will Sheffield houses start selling again (regardless of price)' thread....

 

If you look at the Sheffield Property Guide each week you will often see properties with a notice saying the agents are in receipt of £xxx for a particular property and anyone with a better offer should make that offer within 7 days.

 

This, I feel, gives a good indication of the value of that property, they are rarely bought by people with loans or mortgages. A number of these adverts/notices appeared in the past couple of weeks indicating a sale price of about 30% down on the price the property would have been expected to achieve at the height of the last boom.

 

Another indicator is the speed at which sales are going through. Three properties in the area close to us have sold within 4 to 6 weeks of going on sale. Two have proceeded to completion. I feel that these must have sold at fairly close to the asking price because of the obvious interest and speed of sale.

 

For this reason and the latest Building Society satistics saying that price falls had been the lowest for several months I think the bottom has almost been reached. Property in Sheffield will never sell 'regardless of price', it won't sell anywhere on that basis.

[Phylis 10]

I just edited your quote so that it reads as you actually mean it.

 

That is after all what you have been trying to do on here for the last year - save your skin by trying to get other people to lose their money.

 

At least Tony had the good grace to give up in the end.

 

You may have got that wrong. My job is perfectly safe, my home is very safe and my money, well lets just say that as prices of items i buy are falling im better off than i ever have been. More money is going into our savings account each week than ever has. So as things stand we are doing well. Can you say the same Sham?

 

I have my home i dont need to advise others to buy or sell. I can offer an opinion but that is all it is. We would need another huge drop in prices to push us into negative equity and as we dont intend to move this wouldnt be an issue either. Our home is a long term investment, we plan on living there a long while. Price variations now mean nothing to us as we dont intend to sell.

 

Buying a home is a long term plan. If someone buys now they may lose in the short term but long term prices will recover and chances are they will make some money to boot. Sticking money in a savings account is all well and good but it doesnt provide you with a roof over your head, you still have to rent a home. Why do this when you can buy your own.

[Dimitri 11 10]

Good advise. Lets all sit on our hands and money and see where the economy goes!!!!

 

In reality we are all (bar a tiny, tiny % of people) watching to see where the economy goes - we can't change the situation. We may as well make the most of it and as far as buying a house goes that means waiting for at least a few months.

[Dimitri 11 10]

If a buyer is in a position where they can easily afford the repayments on a mortgage now is as good a time as any to buy. The choice of property is massive. They may never get the oppurtunity to be so choosey again.

 

If a buyer wants more money in his/her pocket they should wait a while. Even if you can easily afford the payments why bother if you can easily afford them and have money left over as well.

 

Multi millionaires excluded here's a quick calculation as to why buying a house now (without massive discount) is lunacy.

 

100000 Mortgage at 6% - £652/month

80000 Mortgage at 6% - £522/month

 

Im sure my figures can be picked apart and people can say 'they won't fall by that much, a £70000 grand house won't fall to £50000' etc. but the principle is the same, YOU SAVE MONEY BY WAITING. If that doesn't appeal to you that's your choice.

 

There will be a time when it is debatable that holding out will save cash but at the mo it isn't. What is going to happen to make prices go back up with immediate effect as that is what needs to happen for buying now to be a good idea.

[espadrille 10]

Good advise. Lets all sit on our hands and money and see where the economy goes!!!!

 

If we all do this we can all kiss goodbye to our jobs, homes and any money we earn.

 

If a buyer is in a position where they can easily afford the repayments on a mortgage now is as good a time as any to buy. The choice of property is massive. They may never get the oppurtunity to be so choosey again.

I agree with that.

[espadrille 10]

You may have got that wrong. My job is perfectly safe, my home is very safe and my money, well lets just say that as prices of items i buy are falling im better off than i ever have been. More money is going into our savings account each week than ever has. So as things stand we are doing well. Can you say the same Sham?

 

I have my home i dont need to advise others to buy or sell. I can offer an opinion but that is all it is. We would need another huge drop in prices to push us into negative equity and as we dont intend to move this wouldnt be an issue either. Our home is a long term investment, we plan on living there a long while. Price variations now mean nothing to us as we dont intend to sell.

 

Buying a home is a long term plan. If someone buys now they may lose in the short term but long term prices will recover and chances are they will make some money to boot. Sticking money in a savings account is all well and good but it doesnt provide you with a roof over your head, you still have to rent a home. Why do this when you can buy your own.

I agree.people who sit on the fence will be the losers as they will wake up and realise that the house that they are hoping for has just been offered on and when they decide to try to get on the ladder, it will simply be too late.

I am 47 years old and bought my first house when I was about 23.I bought it for £20,000.12 years later, sold it for 53,000.Bought a large 4 bed semi in Meersbrook for £48,000 and 8 years later sold it for £210,000.

This was largely due to buying houses that needed work doing on.The time of the year and the state of the market was irrelevant.

 

Actually when the first house was purchased interest rates were about 14%!!!!.If I had procrastinated about that and whether the house was overpriced I would not be in the situation that I am in now, with a house in Crookes that has increased in value by about 40k since it was bought 3 and a half years ago due to the fact that it has been renovated.This is what you should be looking at when you look to buy...How much can be made on a house?.Does it have potential to make money?..Not whether you can get it at a bargain basement price in my opinion.

[rustyfunk 10]

Good advise. Lets all sit on our hands and money and see where the economy goes!!!!

 

If we all do this we can all kiss goodbye to our jobs, homes and any money we earn.

 

If a buyer is in a position where they can easily afford the repayments on a mortgage now is as good a time as any to buy. The choice of property is massive. They may never get the oppurtunity to be so choosey again.

 

Currently the repayments are only part of the problem, the real stick in the mud is the deposit. Until both these change, house prices will fgall regardless of the amounts of ramping on internet forums.

 

As for seeing where the economy goes, well, thats vitally important, but particularly in relation to the thrust of your post. If we get a deflationary environment, then your advice is irresponsibly dangerous. Sitting on money (and or paying down debt) would be entirely the best thing to do, and spending money you dont have (ie mortgage) would be foolish in the extreme.

 

Also it worth bearing in mind that excessive borrowing for mortgages (in the main) has lead us to the point we are today, and in the words of Einstien, "We can't solve problems by using the same kind of thinking we used when we created them."

[Cyclone 10]

[/b]

I agree.people who sit on the fence will be the losers as they will wake up and realise that the house that they are hoping for has just been offered on and when they decide to try to get on the ladder, it will simply be too late.

I am 47 years old and bought my first house when I was about 23.I bought it for £20,000.12 years later, sold it for 53,000.Bought a large 4 bed semi in Meersbrook for £48,000 and 8 years later sold it for £210,000.

This was largely due to buying houses that needed work doing on.The time of the year and the state of the market was irrelevant.

 

Actually when the first house was purchased interest rates were about 14%!!!!.If I had procrastinated about that and whether the house was overpriced I would not be in the situation that I am in now, with a house in Crookes that has increased in value by about 40k since it was bought 3 and a half years ago due to the fact that it has been renovated.This is what you should be looking at when you look to buy...How much can be made on a house?.Does it have potential to make money?..Not whether you can get it at a bargain basement price in my opinion.

 

I think you're completely missing the point.

Firstly most people will be buying a home, not an investment, so the criteria of how can be made on it shouldn't be an important one.

Secondly, if you bought any of those houses whilst prices were dropping £500 a month or more then you weren't all that smart, even though it worked out for you.

If you two are so keen to buy then go and do it, everyone else will continue to wait for the very good reason that it saves them money. This isn't just a theory, it's born out by the figures, people are waiting and prices are dropping.

[swissheavy 10]

How on earth people work out their house prices is beyond me. Sure it may have 'increased' in value due to renovation, but there was a cost to that renovation. Finally, I reiterate, a house is worth only what someone is willing to pay for it. And there aren't many people willing to pay anything for any house atm.

[Dimitri 11 10]

[/b]

I agree.people who sit on the fence will be the losers as they will wake up and realise that the house that they are hoping for has just been offered on and when they decide to try to get on the ladder, it will simply be too late.

 

Ive no idea when the market will bottom out and when I am saying wait I am thinking at least 6 months and maybe a year. For anyone renting at the mo it is v. unlikely they will lose out on cash by waiting and for anyone not renting they will almost certainly not lose out.

 

As Cyclone has pointed out most people are buying a house to live in, not to make money on, and my following calcs are based on this:

 

You can get a decent (no major refurb needed) 2/3 bed terrace in Crookes for around £130,000 at the mo and id guess renting one would be around £500 p/m. By waiting 6 months to buy you will have lost out (having not bought now) if the price has dropped by LESS than £3000. That is a drop (in 6 months) of 2.3%! The figures will be different for other areas but roughly the same as current prices will be more/less but rent will be more/less depending on location.

 

You are essentially saying prices will not drop by 2.3% in 6 months (and then not drop at a rate of more than 2.3% every 6 months at any time afterwards) otherwise your advice to buy now makes no financial sense whatsoever! Is this roughly your prediction on house price falls then?

[Misterf 10]

I agree that the market will see a much needed correction which will hit us all (unless you are a first time buyer). Hopefully the base rate will drop again soon which will help start things again, its just the fact that the banks are not passing these cuts on...