House prices won't recover until 2015

PasturesNew

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/28/cnhousing128.xml

The housing market will not return to its pre-credit crunch health for at least six or seven years, an expert adviser to Gordon Brown has warned.

wymondham

Lots of people who will be staying put for 6 or 7 years then, regardless of if they want to or not, with negative equity. It's a shame they think they will rise to these dizzy heights again - they could do with staying lower generally...

fc123

PasturesNew wrote: »

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/28/cnhousing128.xml

Sounds about right doesn't it?
PN, I get my house back on Monday. Meeting 3 EA's during the day for an opinion on selling.
I have read enough info to understand that selling now is going to be hard but we have to decide whether to gamble using info gleaned from these types of articles (such as the one you have linked) and price to sell.
Our gamble would be that the house will drop further (and so will match our selling price one day) and then will fall further still.

Current conditions aside, the house we own is now in a place we won't live in for at least 4 years, if ever again. We wouldn't choose to live there again F/T either, work permitting.

TBH, IF (big IF) we did sell, we probably wouldn't buy for a few years as we wish to re-locate in around 5 years time for a life change.

I'm really fretting now as it would be a total disaster to undercut the market to get a sale and then some weird, random event pushes prices through the roof again.
Just wanted to get this off my chest STS.

I hate making big decisions like this.

ad44downey

From the article:

"Families must wait until 2015 for the property market to start booming again, according to Stephen Nickell, who heads up the unit which advises the Prime Minister on housing planning."

When will these idiots realise that booming house prices aren't a good thing. Haven't they learnt anything from the present crisis? The cheaper housing is the better for all of our society :mad:

Sapphire

I hope the 'property market' never starts booming again, and that people will learn lessons from the property scams perpetrated over the last few years and go back to looking at property as homes rather than investments.

I have not liked the greed that has been evident in society as a result of the 'property boom', and the fact that Britain has become so reliant on property as a false prop for the economy, while most types of business (e.g. manufacturing) have been allowed to fall by the wayside instead of being encouraged.

Now that property has been shown up to be just a giant, fragile pack of cards, and the financial institutions headed by profiteers with vested interests that created it to be greedy, uncontrolled and immoral scum, what has Britain got in the way of money-making potential?

amcluesent

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/28/cndebt128.xml

British households are now more indebted than those of any other major country in recorded history, it has emerged.

Families in the UK now owe a record 173pc of their incomes in debts, official figures have shown. The debt burden is higher even than Japan's when it peaked in 1990, before more than a decade of deflation.

It's going to be blood bath peeps!

lostinrates

fc123 wrote: »

Sounds about right doesn't it?
PN, I get my house back on Monday. Meeting 3 EA's during the day for an opinion on selling.
I have read enough info to understand that selling now is going to be hard but we have to decide whether to gamble using info gleaned from these types of articles (such as the one you have linked) and price to sell.
Our gamble would be that the house will drop further (and so will match our selling price one day) and then will fall further still.

Current conditions aside, the house we own is now in a place we won't live in for at least 4 years, if ever again. We wouldn't choose to live there again F/T either, work permitting.

TBH, IF (big IF) we did sell, we probably wouldn't buy for a few years as we wish to re-locate in around 5 years time for a life change.

I'm really fretting now as it would be a total disaster to undercut the market to get a sale and then some weird, random event pushes prices through the roof again.
Just wanted to get this off my chest STS.

I hate making big decisions like this.

Good luck. I hate the big decisions too. Where is the house?, thats relevant to its salability whatever the market.

WTF?_2

amcluesent wrote: »

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/28/cndebt128.xml

British households are now more indebted than those of any other major country in recorded history, it has emerged.

Families in the UK now owe a record 173pc of their incomes in debts, official figures have shown. The debt burden is higher even than Japan's when it peaked in 1990, before more than a decade of deflation.

It's going to be blood bath peeps!

I agree - with debts of 173% of current income any sort of downturn in the economy goes from being uncomfortable to 'a complete personal disaster'.

Yet people still don't seem to get it. I certainly get the impression that lots of people out there would still take a 100% 5x salary mortgage if the banks were still giving 'em out.

I think there's a whole generation of people out there who don't actually know what it's like to not be in debt or to have to pay it down. They have literally coasted along in a state of ever-increasing indebtedness for their entire adult lives, servicing it because they can get away with low minimum repayments and get their limits extended as often as they need them to be.

The effect of having to pay this debt down is going to be extreme.

LittleMissAspie

What exactly do people mean by "recover"? Looser lending and lower interest rates? Monthly rises in house prices? Prices back to where they were at the peak? What?

Prices took 10 years to get back to peak last time so I'm thinking longer this time. 2020 perhaps. That would make sense for prices to start rising a little around 2015.

amcluesent

With peak oil, peak water and global migration, by 2020 "property rights" could be forgotten about and houses will need protecting by armed local militia. The police could easily lose control in England once unemployment hits 10,000,000 and riots have torched a dozen northern towns.

RecoveringAlcoholic

Thanks for the links.