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

blisk3

RenovationMan wrote: »

Why would anyone panic? A 'perfect storm' of financial disasters continuing over a 4 year period and house prices only fall 1.3%? That has to be one of the most robust investments people could have made.

With a standard 25 year repayment mortgage, a home owner would have paid off 1/25th of his mortgage over that same period. That equates to 4% repayment. So although a home owners house has fallen in value by 1.3%, this equity would have risen by 4% making an overall 2.7% gain in his net equity wealth.

2.7% is an OK rate of return in these difficult times.

What about volume of sales, the market & economy isn't back to normal.

The market is in denial.

blisk3

More bad news

Mortgage rationing 'to get worse'

Home buyers will find it even harder to obtain a mortgage in the coming months, the Bank of England says.

Its quarterly survey of lending activity shows that lenders are going to be even fussier about prospective customers.

"Lenders expected a tightening of credit scoring criteria for granting new secured loans to households," the Bank said.

It said lenders were worried about the poor economy and falling house prices.

"Factors such as the cost and availability of funds, the economic outlook and expectations for house prices were all expected to pull down on credit availability," the Bank reported, in its survey of credit conditions.

Dan:_4

blisk3 wrote: »

More bad news

Mortgage rationing 'to get worse'

This is not bad news blisk!

blisk3

Dan: wrote: »

This is not bad news blisk!

What about house prices, what about economy.

Britain depends on it.

blisk3

Sellers asking too much, buyers cannot get mortgage.


Housing market 'to stay subdued'

There is no sign of the UK property market picking up in the coming months, the Royal Institution of Chartered Surveyors (Rics) has said.

Its latest monthly survey says some sellers are still asking too much for their properties, while some potential buyers cannot raise a mortgage.

2012 is not looking good year.

Dan:_4

blisk3 wrote: »

What about house prices, what about economy.

Britain depends on it.

House prices will not be effected. The last thing Britain needs is higher house prices.

RenovationMan

blisk3 wrote: »

What about volume of sales, the market & economy isn't back to normal.

The market is in denial.

Everyone is just battening down the hatches and paying back debts, just like the government is doing with the country's finances. Over the 4 years that we have been in this financial crisis, people with 25 year repayment mortgages have repaid 16% of their mortgage debt. That's not including the millions, including myself who are making overpayments, increasing savings or paying down other debts such as loans and credit cards.

The housing market will remain static until people feel better off. I'd imagine that with the debt reduction taking place and a revival in the economy we will see a sharp climb in house prices and sale volumes due to such pent up demand.

If I were in a position to buy, I'd make sure I bought before we started to see 'green shoots', that's for sure.

Pimperne1

RenovationMan wrote: »

Everyone is just battening down the hatches and paying back debts, just like the government is doing with the country's finances. Over the 4 years that we have been in this financial crisis, people with 25 year repayment mortgages have repaid 16% of their mortgage debt. That's not including the millions, including myself who are making overpayments, increasing savings or paying down other debts such as loans and credit cards.

The housing market will remain static until people feel better off. I'd imagine that with the debt reduction taking place and a revival in the economy we will see a sharp climb in house prices and sale volumes due to such pent up demand.

If I were in a position to buy, I'd make sure I bought before we started to see 'green shoots', that's for sure.

Great stuff RM. There is too much of a tendency on this site to see everything as doom and gloom.

Until the market sorts itself out, could be a few years, only distressed sellers are going to be getting too involved in disposing their single biggest asset (and the key to their long term well being). I would be content if prices continued to go down by about 1% a year as that makes little or no difference to home owners. Someone will come along soon and say that 1% drop is effectively 6% after inflation is taken into account - not really, if you sell your house you are likely only to be buying another house, not something that has gone up with the rate of inflation.

John_Pierpoint

Sterling improved a bit in the run up to Xmas as hot money rushed out of the Euro, but it is still only worth about 80 pence for the 105 pence it used to be worth when Tony Bliar was running the country.

So that is OK then, we have all got poorer together and there has been no change to the (paper) pound in your pocket..

I expect they can say that in Argentina.

Anyone want to revise their questimate in the annual "forecast next year's change in house prices" thread?.

sabretoothtigger

A plethora of doomsayers who have correctly predicted a collapse previously give opinions on prospects for 2012

http://www.bloomberg.com/money-gallery/2012-01-14/apocalypse-how-dire-2012-forecasts.html#slide1