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Debate House Prices


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The real question is why house prices aren't falling faster?

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Comments

  • Incisor
    Incisor Posts: 2,271 Forumite
    1,000 Posts Combo Breaker
    Chris2685 wrote: »
    If you take properties in the area at current value, it is not overvalued... Of course it IS, because all properties are over-valued right now..

    Slave to the developer? It isn't a new build, it was built in 1959.
    Ah, makes a difference, if you don't have to take a developer's premium into account. Just remember the difference between asking price and selling price ...
    After the uprising of the 17th June The Secretary of the Writers Union
    Had leaflets distributed in the Stalinallee Stating that the people
    Had forfeited the confidence of the government And could win it back only
    By redoubled efforts. Would it not be easier In that case for the government
    To dissolve the people
    And elect another?
  • dopester
    dopester Posts: 4,890 Forumite
    moggylover wrote: »
    The UK is desperately short of housing - thus whatever house prices go down to - demand will be high once the market improves, and whatever people think or say - the prices will go up again. That's what a market driven, free economy does. I'm not saying it is right or sensible - but it is the way it goes!

    Market improves? And how do you expect that to happen?

    Demand also requires the ability to pay.
  • It was the BTLetters that caused house prices to keep on rising.
    They didn`t buy the properties to LIVE in but as a "pension",thus pricing out the FTBuyers.

    When people saw the way Brown had wrecked their pension schemes, by his obsessive taxation,they gave up on their pensions and sought an alternative,hence the BTL brigade.

    But it was also your older people that had paid their mortgages off,had seen the stock market crash,and crap interest rates for their savings,who decided to jump on the BTL bandwagon,driving prices even higher

    This is so true most of the people i know who got involved in BTL did so because their pension was destroyed by brown's taxes.
  • Chris2685
    Chris2685 Posts: 1,212 Forumite
    dopester wrote: »
    Market improves? And how do you expect that to happen?

    Demand also requires the ability to pay.
    http://www.housepricecrash.co.uk/graphs-average-house-price.php

    It is pretty likely that house prices will improve after a drop over the next few years if you base it on historical data.
  • alared
    alared Posts: 4,029 Forumite
    Chris2685 wrote: »
    http://www.housepricecrash.co.uk/graphs-average-house-price.php

    It is pretty likely that house prices will improve after a drop over the next few years if you base it on historical data.

    The housing crash of the early nineties caused depressed prices `til the start of the recent boom which began seven years ago.

    So,by going on that, I would guess an eleven year period at least before the start of the next "boom" cycle.
  • Property can only drop so far...............:money:

    AND then they stabilise.

    The properties that have dropped are mainly those which were overpriced or undesirable. Now they have fallen back to more or less the price they should have been - they can't fall any more. It wouldn't be economically possible.

    Things will level out by next Spring and prices may stay static for a year or two - and then they will start to climb back up again. Just like they always have.

    Even the doom & gloomers accept that; which is why they're waiting to pounce themselves!

    Everyone knows property is the best investment long term. :money:
  • alared
    alared Posts: 4,029 Forumite
    Never try to catch a falling knife!
  • Property prices will always go down more slowly than they rise. Look at it this way: FALLING market - you hold out and hold out and hold out until you get what you want. Perhaps you can't let the house go for less because you owe too much mortgage or just simple pride - a sense of not wanting to look stupid.

    RISING market - you get three estate agents round to value the house and being a natural human being you go with the one who promises to get you the best price. The house goes on the market at considerable OMV. Your neighbours see how much you are asking for the property and try to get a bit of the same - hence asking prices rise.

    It's all BS! I am finding at the moment that there are just no buyers whatsoever. You simply couldn't give half of the properties on the market away. Please note though that this is only a temporary situation. The natural drivers of house price growth in the UK are still present, and will actually be increased due to Housebuilders sacling down operations. Expect to see house prices at a higher level than ever come 2010.
  • dopester
    dopester Posts: 4,890 Forumite
    The properties that have dropped are mainly those which were overpriced or undesirable. Now they have fallen back to more or less the price they should have been - they can't fall any more. It wouldn't be economically possible.

    You're in for the kind of shock which will melt your closed mind.
  • dopester wrote: »
    You're in for the kind of shock which will melt your closed mind.
    Agreed. 50% drops now being quoted by the media (link available) and it's just the beginning. Why are people in denial over the state of the market?
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