House Price Crash Discussion Thread

sdooley · 30 January 2008 at 10:28PM

I read that graph as showing precisely the opposite.

The graph is rebased. The really cheap houses will have increased by more as a percentage in the boom so they appear at the top of the graph. Then they crash.

beingjdc · 30 January 2008 at 10:54PM

sdooley wrote: »

I read that graph as showing precisely the opposite.

The graph is rebased. The really cheap houses will have increased by more as a percentage in the boom so they appear at the top of the graph. Then they crash.

I don't think that's true - the top four are Miami, LA, San Diego and Washington, the bottom three are Detroit, Dallas, and Cleveland.

Nenen · 31 January 2008 at 1:05AM

pagerank wrote: »

A remarkable read. I've ordered the book.

Our house has been on the market for 15 months. Commutable green belt. Picture postcard stuff. Plenty of viewings, a few offers below asking, I wish I'd accepted one of the earlier offers now. I knocked 80k off having just spent 25k 'adding value'. I know three other sellers in/around our village all have similar tales with buyers now making offers up to 30% below asking.

So what was the starting price?

Pobby · 31 January 2008 at 10:53AM

Well it looks like the USA is trying to keep the party going.A couple of interest rate cuts,a package of tax cuts.I have little doubt that the BOE will follow suit.

Difficult decision.It`s very clear to me that the inflation figures are screwed.Take the rates up,ooooooch,more pressure on those already heavily indebted,strain on businesses,and downward pressure on the housing market.Bring down the rates and risk further inflation?

It`s a right mess if you ask me.

John_Pierpoint · 31 January 2008 at 3:47PM

sdooley wrote: »

I read that graph as showing precisely the opposite.

The graph is rebased. The really cheap houses will have increased by more as a percentage in the boom so they appear at the top of the graph. Then they crash.

That does not really follow, here in the UK it is the "planning gain" that really matters.
In a recession it is the land price that will fall the most. Having said that a big old wreck in (say) Guildford with potential to become a nice little close of half a dozen detached houses will perhaps drop from 3 million to one million GBP. While a terraced house plot in Dewsbury might fall to be virtually valueless. The latter fall would be greater in percentage terms:rolleyes: but which mortgage company is more likely to be taking which mortgagor to the bankruptcy court?
John.
PS In 30 months time, it might be the time to snap up a BYO (Build Your Own) plot near Guildford?!

wolvoman · 31 January 2008 at 4:11PM

nelly wrote: »

If there is a housing shortage how come theres over 1 million for sale on rightmove alone

This might sound sarcastic.....well because it is....but

If I had a million quid on my desk I would'nt claim I had a money shortage.

Could it possibly be that someone has been lieing? y'know like estate agents because they only work on commision and rely on volumes????

shirley not

But if there are 1 million and 1 people wanting to buy those 1 million houses then there is a shortage.

Likewise if you had a million quid on your desk but owed £1,000,001 then you would have a money shortage.

Alan_M_2 · 31 January 2008 at 5:48PM

wolvoman wrote: »

But if there are 1 million and 1 people wanting to buy those 1 million houses then there is a shortage.

Likewise if you had a million quid on your desk but owed £1,000,001 then you would have a money shortage.

No I wouldn't, I have a minor cash flow issue;)

nelly_2 · 1 February 2008 at 1:46PM

wolvoman wrote: »

But if there are 1 million and 1 people wanting to buy those 1 million houses then there is a shortage.

Likewise if you had a million quid on your desk but owed £1,000,001 then you would have a money shortage.

BUT IF

BUT IF????

What the hell are you on about if there was 1 million buyers then they would have bought them!

Let me just check.............................

Yep there all still there very much for sale and very buyerless.

What you just said was like going up to someeone who had just been shot dead and saying to them 'Hey if that bullet had missed youd still be alive mate'

MiserlyMartin · 2 February 2008 at 10:49PM

Watch this on Monday!
http://www.radiotimes.com/ListingsServlet?event=10&channelId=92&programmeId=73152148&jspLocation=/jsp/prog_details_fullpage.jsp

Panorama

Monday 04 February
8:30pm - 9:00pm
BBC1
Bursting the House Price Bubble

An investigation into sharp practice in the housing market which has kept house prices artificially high and plunged some homeowners into negative equity. Developers, valuers and solicitors all come under the microscope in Raphael Rowe's report which reveals some nasty surprises for those who joined the buy-to-let frenzy.

And this on Wednesday!
http://www.radiotimes.com/ListingsServlet?event=10&channelId=26&programmeId=73378118&jspLocation=/jsp/prog_details_fullpage.jsp
Repossession, Repossession, Repossession

Wednesday 06 February
10:35pm - 11:35pm
ITV1
Business journalist Jeff Randall looks at how the nation's addiction to debt has steadily increased over the past 10 years, and how home repossessions and bankruptcies are soaring as a result. He investigates why we became hooked on spending money we don't have, and what the end of credit will mean for the nation in the long-run.

sarah_save_a_lot_2 · 4 February 2008 at 12:25AM

Erm well i think your right your boyfriend is a div!!! Seriously the only thing i think that you can do in this situation is sit tight and try to ride the crash out property has historically always increased in price and will keep doing so (look at the eighties) I really dont think that remortgage is the way forward you will just end up in more debt. Maybe wait a year and see what happens

ebonylight wrote: »

Oh thank god there is a thread about this.

please help me.

My partner and i bought a very nice but rather small three bed house last july for £148,000.00.

If the crash that is predicted happens, i know (because i work in property) that we are about to lose about 20k on this house.

i am trying to explain to my partner that this is BAD as we would then have a mortgage for this house (which, although not a 100% mortgage, is still quite high) and wont be able to pay it off. and therefore we wouldnt be able to buy a new house.

he just reckons we could remortgage for what's left of this house and the new house (which, he says, will be cheaper due to the crash)

Please can someone explain? who is wrong here? am i being mislead by my colleagues or is my boyfriend a div?

thanks

Debate House Prices

House Price Crash Discussion Thread

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free