N Ireland house prices down 18.6%!

jetboy

You can count on rents going up. The recession we are now involved in is making it harder and more expensive for many landlords. Those costs will inevitably be passed on.
I really can't see why some people chose to take comfort in other peoples downfall on this thread. This is not a situation which will realistically make it any easier for people at the bottom of the housing ladder. Prices may be falling but an awful lot of mortgage providers have closed themselves to new business. Those that havn't have increased the deposits required and/ or many have new mortgage rates which are well above the BOE base rate. The current situation is not good news for anyone.

nellis10

We're selling our house at the moment...we had it sold last July, then the buyer's house fell through. In one way I am glad as we would be sitting with an overpriced house we were buying, but in the other sense, our new situation means we would really liked to have downsized!!

So all in all I am expecting to stay where I am for at least another 2 years before the market rectifies itself and starts moving again! :eek:

tara747

Sigur, your laughing post wasn't very nice. As a renter with decent savings I am delighted by the falls, but it doesn't mean that I don't feel for people who bought at the top.

In any case, a few things:

1. leftieM makes some very good points as ever, very eloquent :T
2. Rents are probably going to be static or fall (supply >>> demand) but either way I don't care - charge me an extra £100 pm rent if you want, it's far less than the £000s houses are losing in value every month!!!
:beer:

3. Low house prices are good for the economy and productivity - the boom was very damaging and this is good news for 90% of people
4. I do sympathise with the other 10% (except BTLers and property-hoarders)

Sigur_2

tara747 wrote: »

2. Rents are probably going to be static or fall (supply >>> demand)

3. Low house prices are good for the economy and productivity - the boom was very damaging and this is good news for 90% of people

House prices falling AREN'T good for 90% of people if they are suffering negative equity. How are falling house prices good for the economy?

What do you base your rental hypothesis on, theory and history suggests rental prices increase as people are now more reluctant to buy a house (currently because banks have few mortgages on offer or just fear negative equity), so demand for rental accommodation increases and therefore rents go up. We only need to look at latest figures to see rent prices increasing as house values decrease.

wifeforlife

A charge of vacant rates on domestic properties could help the rental market as it will force property investors to move with the property, thus hopefully keep rents down (rumoured to be 2010)

I'm delighted the fall is finally happening as someone who has yet to buy I was starting to panic thinking I'd never own a property, but if it continues on I'll def be in a better position to buy

Cate

baldeagle09

Don't be in any rush to buy a house. Supply and demand figures indicate there is a long way to go before we hit the bottom. I thought I was being a tad pessimistic when I predicted a 15% fall in house prices this year. No green shoots for the next 3 or 4 years.

talksalot81

Sigur wrote: »

House prices falling AREN'T good for 90% of people if they are suffering negative equity. How are falling house prices good for the economy?

A year ago people were saying that only the tiny majority would suffer from NE. Whilst I disagree with this, I am damned near certain that it is nothing like 90%!

Everyone has the benefit that their next house costs less. This applies even to those in NE.

Sigur_2

Except negative equity will ruin consumer confidence and will have a severe impact on the consumption effect and also inhibit's a person's freedom to move.

Studies show housing wealth has a large effect on non-housing wealth upon consumption.

It would be entirely dependent on when you bought the house, if you bought it over 10 years ago your house value will be much greater than debt, but if you're a recent buyer you are possibly on course to suffer negative equity, especially considering how popular no-deposit or low deposit mortgages became, with some people taking out 125% mortgages.

If people are suffering negative equity it will be hard for them to move house, they will have to downsize.

Old_Git

Sigur wrote: »

If people are suffering negative equity it will be hard for them to move house, they will have to downsize.

But if they are first buyers they probably cant downsize .

Also with negative equity they will be stuck with SVR

talksalot81

Sigur wrote: »

Except negative equity will ruin consumer confidence and will have a severe impact on the consumption effect and also inhibit's a person's freedom to move.

Studies show housing wealth has a large effect on non-housing wealth upon consumption.

Yeah, but what is the alternative!?

With prices correcting, people are brought down to earth and have to work for their luxuries. In the absence of it, you produce a massive age divide. No longer would your economic well being rely upon your academic and employment success, it would rely upon your having a house. The lowest paid workers could very well enjoy economic well being that a highly paid medical doctor could only dream of, simply based on the time of their birth.