We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
What could happen to house prices?
dolce_vita
Posts: 1,031 Forumite
Well, there are 3 possibilities..............
They could go up ^^^^^^^^^^^^^^^^^^^^^^.........................
They could remain the same <><><><><><><><><><>.........................
Or they could..................
...............................sorry I'm not allowed to mention the other one.
They could go up ^^^^^^^^^^^^^^^^^^^^^^.........................
They could remain the same <><><><><><><><><><>.........................
Or they could..................
...............................sorry I'm not allowed to mention the other one.
dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing
0
Comments
-
House prices only ever go up.
You can see that if you look back over the last 10 years.
But theres no need to look back any further... no no need at all.
Just look at the last 10 years. For gods sake don't look back any further.
Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
.... and it will go down
|
|
v
Why there is so much stigma on saying this?
Happiness is buying an item and then not checking its price after a month to discover it was reduced further.0 -
They could go down but only by a little bit- not actually crash. I think the problem is when people mention prices dropping they always say the word crash which implies some sort of plummet along with people screeching how all houses are going to drop by 50%. There doesn't seem to be any middle ground.0
-
They could go down but only by a little bit- not actually crash. I think the problem is when people mention prices dropping they always say the word crash which implies some sort of plummet along with people screeching how all houses are going to drop by 50%. There doesn't seem to be any middle ground.
The general understanding of a 'crash' is where prices drop by >30% anything less is mearly a 'correction'.
A drop of ~40% would mean prices reverted back to there mean average against wages.
Hence to return to 'normality' we would only need a small 'crash'.0 -
zzzzzzzzzzzzzzzzzzzNotlob0
-
The general understanding of a 'crash' is where prices drop by >30% anything less is mearly a 'correction'.
A drop of ~40% would mean prices reverted back to there mean average against wages.
Hence to return to 'normality' we would only need a small 'crash'.
There has never been a "correction"... this is a term made up by a number of VIs. Once prices start dropping they always "crash" as you put it due to how the market works.
The last "crash" at the end of the 80s was what the VIs call a "soft landing". Priced dropped less than 20% but wages rose massively. Prices Vs wages droped 50%+. This time it is different though... wages can't rise 25% a year like they did at the end of the 80s.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
Why there is so much stigma on saying this?
Haven't you heard? Doom-mongering has been banned round here...
http://forums.moneysavingexpert.com/showthread.html?t=5771510 -
No please look back further.House prices only ever go up.
You can see that if you look back over the last 10 years.
But theres no need to look back any further... no no need at all.
Just look at the last 10 years. For gods sake don't look back any further.
Look back 20 years, back to 1987.
This will be a good indicator of how house prices have been affected through the crash of early 90's and how they have recovered.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »No please look back further.
Look back 20 years, back to 1987.
This will be a good indicator of how house prices have been affected through the crash of early 90's and how they have recovered.
You mustn't look back further. If you do that the "deny there will ever be a crash" pixies will come around and steal your firstborn child.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
You mustn't look back further. If you do that the "deny there will ever be a crash" pixies will come around and steal your firstborn child.
No, looking back further will provide a better factual analysis as to the effect of house prices AFTER a housing price crash.
IF a crash were to happen again, this will show what is likely to happen to house prices after the crash (similar trend)
In fact it will not be exactly the same, there are many other factors which are different this time (lower unemployment, lower interest rates etc) so if anything I would pervieve the rebound after the crash to be much quicker.
Let's presume that house prices do crash, what will happen?
There appears to be a lot of people waiting for the crash before buying and a lot of people who are FTBers that cannot get the house of their choice (note I did not say could not get on the ladder). Add to this many BTL investors who will also want to get in on the lower house price deals.
What does this mean?
I am no economic expert but it would appear that you would have an even greater demand than what we have had in recent years.
Unless supply was to miraculously be available to meet the demand, you are likely to see a rebound of the house prices with the bull more rampant than ever.
It may be that house prices will yo-yo like this for as long as there is a supply shortage.
One thing will remain though and that is that over the long term, house prices will rise:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.6K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.9K Spending & Discounts
- 244.5K Work, Benefits & Business
- 599.8K Mortgages, Homes & Bills
- 177.2K Life & Family
- 258.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards