Fresh Start about House Prices

it depends were you live, here in london some parts are still rising but others are dropping off, like hackney that is still rising but parts of kensington and chelsea have seen falls but property in chelsea is some of the most expensive in the world, anything under 250k is still selling well in london ,mainly flats, and house's under 500k but its the top end thats seeing falls which if you average it out makes it look like london is falling but in reality sellers aren't dropping there prices cause they dont need to, unemployment is low and interest rates are low and will come down next month imho, so if sellers dont get there prices they dont need to sell, theyll sit tight and stay put, its the btl investers that aren't making what they thought they would that need to sell, in london there's never ever enough property compared to the number of people that live here, doubt property in london will rise but i can see it staying level maybe small drop in the next few years, sipps will help the market a little in autum

Hampshire - dont you just love it? Agree with ali.

I think house prices at the lower end are shifting, all a bit slowly. Most of the overpriced vacant possessions are not - I laugh loudly. These are the speculators who have bought recently and trying to cash in. Stuff in the territory of 2nd buyer homes do not appear to be selling unless they are discounted or in desirable locations.

I do believe new homes - are not shifting! Massive discounts like 25% off (??) (i need to check the banner outside again - its in Milton) and "move in for £99", and "full part exchange price given"

I think prices can only go down from now..

But dont take my word for it or anyones opinion - you need to do your own research....

DrStep wrote:

Also look at the type of people selling these homes. They probably bought them when the earnings to house price ratio was much lower. IF they bought the house at todays prices can they afford it????? The most probable answer is no.....thefore a correction in this balance must happen - we cant keep borrowing more and more just to buy a house. The sainity will return.

Thats a very sensible answer, but until people are forced to sell (job losses, higher interest rates ect) I personally think they will remain static.

If house prices do drop, will this surely only give people an incentive to sit tight? Unless forced to through unemployment or divorce, who in their right mind would sell in a falling market? I ask my questions assuming that the majority bought houses, like me, to live in. Rather than chase a rising market, I have extended my house and am about to do so again. This will give me all I need for many years to come hopefully.

On the subject of builder's incentives to buy. A friend in their twenties is about to buy their first home. Even purchasing only 75% of the property from the builders, means they are still going to have to find a £150K mortgage as a FTB. With their precarious employment state, I pray it all works out for them. Hopefully they will take ASU cover.

knuckledragger wrote:

If house prices do drop, will this surely only give people an incentive to sit tight? Unless forced to through unemployment or divorce, who in their right mind would sell in a falling market?

Why wouldn't ANYONE sell in a falling market? It's easier to trade up in such a scenario.

Example: My house is "worth" £200K, my dream house is worth £300K.

If the market drops, my house is now worth £150K and my dream house £230K. The next rung up therefore becomes smaller.

I do wish people on the ladder would take the pound signs from their eyes for one nanosecond and THINK about how the market operates.

The only people affected by a drop in prices will be recent speculators and FTBeras. But they can't say they weren't warned...