Is this the right or wrong time to buy a house?

[sham71 10]

Originally posted by neilaw

I lived in Hong Kong and that had nothing to do with over inflated prices, it was all to do with fears about the china handback. Companies left HK, people left HK cos their jobs went and the property became less desirable. Not an overinflated price issue.

 

 

so what you are saying is there was a reason the bubble burst ie. the Chinese handover. Not sure what you are arguing (other than that I am mad, which I will accept)

 

Did you live in Japan as well?

[Tony 10]

He beat me to it:)

 

Whilst there is never a guarantee, what happened in Japan and HK was, as suggested, more to do with the economy than prices.

 

Prices are only 'over-inflated' when people can't afford them. Then they just stop buying. They don't go down though.

 

However, when there is no-one to buy (because of other factors), then prices can fall, ie HK and Japan.

 

Sheffield prices are still very affordable. The only gap in the market is in first time buyers homes, and this is being addressed in new developments being planned.

 

The housing market is a living entity and it constantly adjusts itself according to demand.

[sham71 10]

So increasing interest rates, increasing insolvency rates, decreasing rental yields, record debt levels and very low income growth (to name a few) are not economic factors?

 

House prices cannot be viewed as affordable if there is a shortage of housing for first time buyers. If affordable housing is built for first time buyers, how will they then be able to move up the ladder? If the price of their house goes up it will then be too high for the next generation of first time buyers. So then, following you logic, a whole new development of first time buyer houses have to be built.

 

Why can't house prices go down? If people 'stop buying' what happens to the people that HAVE to move due to relocation, inability to keep up mortgage payments etc. Once the speculators move on, who will buy these houses if the prices stay the same.

 

Everyone has their views, but they generally suit their circumstances. Hence, estate agents will tell you that prices won't crash.

Unless, that is, you are selling. Then they suggest that its the time to sell.

[neilaw 10]

Increasing interest rates et al, will not cause a crash unless they reach catastrophic levels as per the late 80's. All they will do is slow the rise in prices. A crash will only ever occur at a national level, not regional. Prices exceeding peoples ability to buy into the market has never ever caused a price crash, only national economic conditions can do that and as the economy is strong that wont happen.

 

People either downsize their expectations as can be seen in London, i.e. they buy a one bedroom rather than two, or they rent.

 

Developers then follow suit and start to build more one/two bed flats than houses.

 

House crash talk about sheffield is total nonsense, it may slow but wont crash.

[Tony 10]

Look, you're not especially wrong, and much of what you say has merit, but you're missing the point.

 

The market will adjust itself as it always has. It has NEVER crashed. I see no reason why it’s going to start now. We have even learned how to maintain the stock market on an even keel since the highs and lows of the late 80’s. The current doom and gloom has been manufactured by the Government to stabilise price inflation. It’s worked!

 

Housing in Sheffield (as I said before) is very affordable when compared to other areas of the country. The perceived lack of FTB property is less of an issue than in the past because the rental market takes care of this to a much larger degree than it did before - and that allows the bottom rung of the ownership ladder to move up.

 

Many FTB'rs are now older, wealthier, etc. That's maybe not going to suit everyone, but it's just an example of how the market adjusts continually.

 

New FTB products are being developed that will offer further choice and diversity such as small studio starter apartments or shared ownership.

 

Mass property ownership is a post-war phenomenon. Before then most people lived in rented housing. Before that, they lived in tied housing. Just more examples of how it changes with the circumstances of the time.

 

When did you last see new housing estates going unsold?

[dancing_man 10]

last time the market crashed i had to sell a house in west yorkshire for the same price i sold it for despite having done a a few grand worth of work on it.

 

I don't think prices will fall that much here - but they might just freeze - which means people struggle to find the cash to pay estate agencers conveyancers and stamp and no-one can afford to move - so everyone just stays put!

 

However i think some buy to let speculators might well get bit hard and have to sell cheap!

[Guest Homer]

It seems that the housing bibble has burst. See

 

http://www.thisismoney.com/20040720/nm80558.html

 

What do others think?

[wibbles 10]

Been done!!!

 

http://www.sheffieldforum.co.uk/showthread.php?s=&threadid=13711

[jackthedog 10]

Ah man, first ever thread snubbed.

 

Gutted!

[Guest Homer]

Whats been done? So people only discuss things once and then thats it?

 

So I've got to dream up a topic that hasn't been discussed before?

 

 

I thought this was a discussion forum. Obviously not.

 

Gutted. No.

[march 10]

Think that was more, continue that thread rather than don't discuss it.

[Miss_60 10]

Unfortunately, this illustrates the mentality of a lot of people who post in this forum. They are very quick to shoot someone down..this is the reason why I very rarely bother with this forum....there are many small minded poeple in here and its far too political.