Crash Crash Crash !!!!!!!!!!!!!!!!!!!!!!!!!!!

Pimperne1

blisk3 wrote: »

'Pessimism' stalks housing market

Negative equity affects 827,000

And in the background you hear the sound of a barrel being scraped.

blisk3

Pimperne1 wrote: »

And in the background you hear the sound of a barrel being scraped.

Slow but sure.

geneer

Pimperne1 wrote: »

And in the background you hear the sound of a barrel being scraped.

excellent rebuttal pimp.
You sure can argue your corner.

blisk3

Relentless pressure on trapped sellers.

House sellers drop prices again

quantic

Aw poor Blisk, are you bitter about not being able to buy the house you want? There, there - I'll get you some milk and a warm towel.

blisk3

Mortgage lending 'still subdued'

padington

It seems London asking prices went down big time since the riots ...

http://www.bloomberg.com/news/2011-08-14/london-house-prices-plunge-as-financial-turmoil-takes-its-toll.html

Also there will be lots more trouble a head as well when the cuts actually kick in and 2012 is looking like a perfect once in a lifetime Uber economic storm ...

Good for the younger generation though if prices do come down loads I suppose.

[Deleted User]

padington wrote: »

It seems London asking prices went down big time since the riots ...

http://www.bloomberg.com/news/2011-08-14/london-house-prices-plunge-as-financial-turmoil-takes-its-toll.html

Also there will be lots more trouble a head as well when the cuts actually kick in and 2012 is looking like a perfect once in a lifetime Uber economic storm ...

Good for the younger generation though if prices do come down loads I suppose.

Yeah, I can just picture masses of sane young people all cheering economic collapse so a few of life's failures feel they might attain something.

Why do you guys always talk about other people benefiting, often those that wouldn't anyway, when it is really yourselves you're interested in.

John_Pierpoint

You can just picture insane young people paying ridiculous amounts of money for shoe box sized properties, all borrowed on "together" mortgages at subprime rates, thus creating economic collapse?
You can also just about picture a whole nation, with an insane balance of payments deficit, printing rounds of insane "quantitive easing" money and thus managing to generate massive inflation and instability in the prices of commodities and especially in the price of gold?

Never mind we are all living in a pretty insane world that will soon have to admit that it did not manage to boost the population from 2,000,000,000 to 7,000,000,000 in 80 years.-:

http://www.breathingearth.net/

Rochdale_Pioneers

Rightmove explains that the price falls of the past few years mean that many people, who would like to sell, cannot afford to drop their prices.

That would crystallise their negative equity, scuppering their plans to trade up or move on.

"More than a million former first-time buyers are prisoners in their own homes - prices are 18% below their 2007 peak when most people were buying with a 95% mortgage," he says.

"Even if they intended to sell they don't have the 20% deposit they now need to put down on the next house."

Not a first time buyer but this describes me, my neighbours, several of my friends etc etc. Bought in 2006, 95% LTV as described, very cheap at the time 5 yr fixed. Now thats ended we've dropped onto the SVR which has dropped our monthly mortgage payment by 14%. Can very comfortably pay the mortgage, like the house, like the area.

BUT we are trapped. I now work in Sheffield, and trying to sell last year quickly became an idiots game (happily I'm given a fully expensed 5-series to make the commute less of a hassle). Several neighbours also trying to sell at various points over the last 18 months who have also given up. A guy down the street with a near identical house to our own managed to talk Barratts into taking it as part exchange. Now they can't sell it either and they're planning to auction it where I'm confident they'll make a loss.

The housing market is effectively dead up here and has been for a couple of years. Nothing sells unless its a repossession stupid price. I could look to rent this place out but don't want to have the hassle of being a landlord, and by the time the lettings agency take their cut the rent wouldn't cover the mortgage anyway. I'm not going to sell at a stupid price leaving me with money still owed to the bank, and even assuming I got the remaining balance of the mortgage for it you now need the 20% deposit described for a reasonable mortgage deal?

So whats the plan? Wait. House was bought for the long term, has enough room (OK so more would be nice), is in a nice neighbourhood. My job in Sheffield may not last forever and for now I have a way to get there anyway. But we are trapped. About 1/3rd of my neighbours would sell if they could, so we're all trapped.