50% drops by 2011

Lotus-eater

Dithering_Dad wrote: »

House price drops are already slowing down

Heard you the first time.

Not sure if thats true, but I would be suprised if we kept up the downwards rate we have had for the last year. I disagree with you when you say that they have almost bottomed, but I agree that it may be a good time to buy, depends on the deal you get. Public sentiment has at last got going and they are starting to think it looks bleak.

luvpump

Seems entirely realistic to me !, 50% may be a bit too much but 30-35 % almost certain IMO, & everyone on the clip agrees too !! ..So dont buy yet..thats the lesson from this !!

chucky

if prices do go up, it will be interesting that the people that took the Halifax and Nationwide as gospel previously will be the ones that will say that they are not accurate as they only are for approved mortgage deals etc, etc, etc if prices do move up or even slow down.

Dithering_Dad

Lotus-eater wrote: »

Heard you the first time.

Not sure if thats true, but I would be suprised if we kept up the downwards rate we have had for the last year. I disagree with you when you say that they have almost bottomed, but I agree that it may be a good time to buy, depends on the deal you get. Public sentiment has at last got going and they are starting to think it looks bleak.

Sorry LE, but I thought it was such an important point that seemed to be escaping people. As one reaches the bottom of a downturn, one finds that the month-on-month drops start to decrease. Have a look at the figures, the month-on-month drops are decreasing, i.e. we're reaching the bottom of the downturn.

We've just had the worst economic news for a generation, the stock market crashed and houses continued to drop. Stocks are now rising on sentiment that they've bottomed out. The stock market always leads the housing market in trends because it represents the economy and house prices follow the economy. Therefore, once the economy begins to recover the housing market will follow.

Lotus-eater

Well I'm not sure the stock market has bottomed out either yet. But I'm just a non informed small investor.

chucknorris

RDB wrote: »

That's possibly the stupidest thing I've ever heard. Property is an extremely illiquid asset. It's also one of the most dependent on easy credit for its value. So all the spread betting prices, no matter how cheap they are, you are losing control of both when you can`t get your money back; and pretty much guaranteeing that your capital will depreciate as the market continues to weaken.

London more so than anywhere else, the bigger they are the harder they fall.

Your post makes no sense! I can't make my mind up if you just didn't understand the post that you were commenting on and that's why or whether perhaps you edited your own thread and accidently missed off some text, but at the moment it makes no sense at all. What are you tryng to say?

hethmar

I would love everything to get back to some stability, but my gut feeling is that we are still staggering and we may see drops and rises for some time (FTSE)

carolt

Ha ha ha! DD is such a joker!

Because of course the housing market did so well in the late 80's/early 90's after the stock market's Black Monday in 1987. Like I wish I'd bought a house in 1988 or 1989! Great timing.

And surely DD can't be unaware that the annualised falls are going to start looking 'better' as soon as you get more than a year away from when prices were still rising?
Month-on-month drops are not falling, they're at best stabilising. But at the rate of 1.3-1.9% a month, that's still a very tidy annualised fall for anyone standing back and waiting before buying.

I'll buy when the maths makes sense for me.

At the moment, with house prices falling and mortgage rates still very high, renting makes far more sense for me - and the vast majority of would-be FTB's.

I'd love to believe we've heard the last of the bad economic news - but I think the oncoming recession - and associated unemployment - is not likely to be good news for anyone, let alone for house prices, however some may wish it so.

mr.broderick

carolt wrote: »

Ha ha ha! DD is such a joker!

Because of course the housing market did so well in the late 80's/early 90's after the stock market's Black Monday in 1987. Like I wish I'd bought a house in 1988 or 1989! Great timing.

And surely DD can't be unaware that the annualised falls are going to start looking 'better' as soon as you get more than a year away from when prices were still rising?
Month-on-month drops are not falling, they're at best stabilising. But at the rate of 1.3-1.9% a month, that's still a very tidy annualised fall for anyone standing back and waiting before buying.

I'll buy when the maths makes sense for me.

At the moment, with house prices falling and mortgage rates still very high, renting makes far more sense for me - and the vast majority of would-be FTB's.

I'd love to believe we've heard the last of the bad economic news - but I think the oncoming recession - and associated unemployment - is not likely to be good news for anyone, let alone for house prices, however some may wish it so.

We are nearing the point where the clever money goes back in.
I would advise all potential ftb'ers to stay in rented though for the next 12 months. B.O.E rates will be 3% come march with mortgage rates closer to that figure. 2 houses in our road have been up for sale forever at peak 2007 prices, both with same agent reduced by 10k have both sold within the last 2 weeks, they have been on the market since we moved in here. Point of note we bought this house 30k less than they have sold for now. Having said that ours has been gutted by us. Going to be an interesting next 6 months, i for one have started scouring rightmove again, looking for an investment bargain....

mr.broderick

Dithering_Dad wrote: »

House price drops are already slowing down

So much pent up demand, the english can't help themselves, frightened of missing out again. 2 Houses in our road been up for sale for nearly a year ,both just gone sold subject to contract, not sure at what price but i would guess near asking, both just been reduced by 10k, both with same agent.