'50% drops'

baby_boomer

Telegraph - How low can they go?

Examples of various drops but the Telegraph seems to agree with ndg's sarcasm.

"House-price falls of 40 per cent and more are being seen across the Midlands and northern England. Yet, despite these potential bargains, statistics suggest that buyers are still deterred by the continued mortgage shortage - and by the prospect of more price falls next year....."

bing0

mymatebob wrote: »

Last year a friend of my parents put his 3 bed property on the market at offers over £180k
Got an offer of £200 and seemed happy, but EA advised that much better was to come.
Has now been on the market at fixed price of £140 for over 11 months.

Conversely.....

Friend of mine bough a house in December for £600k.
Gutted it completely, with a view to converting into flats, changed his mind and sold it for £820k last week.

You forgot to mention the £230,000 your friend spent on improvements,plus any fees paid on selling the place ! Gutted it completely OR completely GUTTED

mitchaa

macaque wrote: »

People can comfort themselves fairy tales or they can face reality.

Over the past few months house pricing has been taken out of the hands of home sellers. Although people are free to advertise at whatever price they like, the actual selling price is being rapidly driven down by the lender's lack of appetite for risk. Some of this process is happening by stealth. The lenders are relying on the buyers to bid the price down, then they send in the valuer to knock another 10% off. Finally they reserve their best offers for 60% loans. In other words, they are already factoring in price falls of upto 60%.

Banks are pushing lending ratios back down to 3 to 3.5 times income. The other factor relates to what is happening to incomes. Truck loads of highly paid city jobs are going to vanish. Elsewhere in the economy, unemployment is rising rapidly. These factors are driving down average incomes rapidly. Its a double whammy.

There will still be a few stubborn souls who will go on advertising their properties at 2003 prices (forget 2007) but that is just window dressing for estate agents.

Like it or not home owners have missed the boat.

Will prices fall by by 50%? Unlikely. More like 60 or 70%.

I read 6 posts in and then couldn't be bothered with the rest of the drivel after reading the nonsense quoted above.

Show me evidence of where banks are now only lending at 3x rate of income. A quick check on my mortgage lenders site (Lloyds TSB/C+G) you can still easily get 4-5x. I shall not waste my time going to other big lenders as i know they will be similar.

Unemployment is rising rapidly? Define rapid?? I dont know 1 person who has lost their job in this ''recession''....Can you?

Rapid to me would mean the majority of people that you would know would have lost their job, i don't know 1 single soul.

And then you come away with this....''these factors are driving down average incomes rapidly''

Evidence required please.

Due to the high levels of inflation over the last 6-12 months, i have personally seen my salary rise by more than 10%. Now i know this is not the norm but the majorities have seen good inflationary increases this year to account for the higher cost of living we have just been through. My partner works in retail management which by all accounts has been suffering recently but yet was just recently awarder with a 5.2% inflation based rise.

With all these rises, explain the reasons for your point that average incomes are being driven down rapidly:rolleyes:

Then i read your last sentence and it all made sense, i've figured, there must be something wrong with you. You are stating the average drop for every single house in the UK will be in the region of 60/70% Do i need to explain to you how averages work? Lets just state 65% as that's in the middle of your prediction...Now to get to that figure based, i dont know lets just make it small...3 houses, 1 drops at 65%, the 2nd drops by 45% (good area perhaps) the next house would need to drop by 85% to get you back to your average 65% national average claim.

So say 30million homes... 10m @ 45% drops 10m @ 65% drops and 10m @ 85% drops

You can' just state the rubbish above and have nothing to back it up with.

I shall not carry on in this thread as no doubt over the next 8 pages of drivel there will be other posts that quite simply contain a whole lot of nonsense with not a shred of evidence to back it up with.

EVIDENCE REQUIRED OF YOUR CLAIMS PLEASE

Cannon_Fodder

Evidence...

Scottish Jobs;
http://news.bbc.co.uk/1/hi/scotland/north_east/7517999.stm
http://news.bbc.co.uk/1/hi/scotland/north_east/7708036.stm


Nationally; Jobless rise highest for 17 years
http://news.bbc.co.uk/1/hi/business/7670800.stm

"The number of people out of work in the UK soared"

Dithering_Dad

symesd wrote: »

I think your response to be a bit patronising.... I do need to sell, this house is falling down, I cannot fix it up as I Cannot get loans secured on it to make the improvements, I can afford to buy a perfect house that will be a perfect size in perfect condition. BUT as my house is now "worthless" I cannot sell so cannot but a house which my family desperatly needs for our health, this house in unhealthy with damp and dangerous wiring.

If the Banks and "Property Investors" had not been so greedy, giving mortgages to people who could not pay them back, lending greater on greater income multiples we would not be in this state.

I understand what makes a propertie value - I used to work in the mortgage industry I left it as I did not agree with the way banks do business. I was unemployed for 2 years because of my principles & family commitments, I had a large amount of equity (40%) in my house when I bought it, this has been wiped out because of greedy people.

I just want to give my family a comfortable home to grow up in..... Not make gross amounts of profit.

What has happened to the housing market is wrong & should never have been aloud to have got so out of control.

Think about it how can a property with 1 bedroom be worth over £500k in 1 part of the uk and £60k in another - come on this is just wrong. What is even more wrong is that someone is stupid enough to pay that amount.

I've gone on enough now.....

I don't understand why you're pouring out such vitriol against 'greedy people', when from first glance you seem to have caused your own problems.

If you bought a run down house, and I assume at a discount, then you should have had the money in place up front to carry out the renovations.

You decided to leave your job because of your principles, and so consigned you and your family to limited income for 2 years. Principles are a great thing, but they don't put bread on the table.

No one forced you to buy this rundown house with insufficient funds and no one forced you to give up your job. You made these choices, so I'm afraid the responsibility rests with you, not the 'greedy people'.

Cannon_Fodder

Out of curiousity I googled "scottish car manufacturers" - came up blank.

"Sales of new cars in the UK fell in October at their fastest rate for 17 years"

http://newsvote.bbc.co.uk/1/hi/business/7712376.stm

How long before that filters into the unemployment figures?

No recession up there. I'm alright, Jock...

Do they apply different interest rates, regionally, to help the regional recession/house-price-crash effects?

Heyman_2

Cooeee - look, it's my old thread still going strong after all this time I won't be happy until it gets more responses than that god-awful 'Crash Crash Crash' thread though :rotfl:

mitchaa wrote: »

I read 6 posts in and then couldn't be bothered with the rest of the drivel after reading the nonsense quoted above.

Yeah got to agree with you on that particular post, although I do think some good points have been made here overall.

Since I started the thread, a 50% overall drop from peak does actually look more likely. Those Halifax figures showing a MoM drop of 2.2% don't bode well....

neverdespairgirl

baby_boomer wrote: »

Telegraph - How low can they go?

Examples of various drops but the Telegraph seems to agree with ndg's sarcasm.

My sarcasm was more directed at the fact that £10 million is still slightly over our budget (-:

baby_boomer

How slow was I?

The Times reports a two-bed flat in Manchester's "hip" Northern Quarter going at auction for £75K or 37.5% of it 2006 sale price.