Rate cuts passed on at last

mystic_trev

House prices won't start going up until the Recessions over - so at least two or three years.

Next year they'll probably drop another 20% - and this from someone heavily invested in Property!

ad9898_3

Dan: wrote: »

Be careful - prices will start to stabilise in the nect 6-12 months

mmm, it is possible but 6 months is way too optimistic with the recession upon us I would say 12-18 months minimum, although prices at -2% a month could have come off another 20%+ in less than 12 months, if they stablise at that (35% off peak) for the 2-6 year trough (which is always the case in housing downturns, 6 years last time), I'd be pretty happy.

carolt

Dan: wrote: »

You've had some nice price falls this year, and more falls will follow over the coming months. Don't miss out by being too greedy - the sale won't last forever.

Oooh - you heard it here first!

There'll be more falls over the coming months!

Does that mean that prices are set to rise, then, as Dan just prophesied the reverse?

(It reminds me of my fear when Anatole Kalestsky wrote an article about Obama as President, the day before the election - I was terrified, given his notorious inability to prophesy correctly re the economy, that he would ave jinxed Obama's chances of winning. Mercifully, even Kaletsky couldn't balls that one up. :rolleyes:)

carolt

But seriously - these rate cuts may be passed on - in the main - to existing borrowers.

But - speaking as a FTB - is there any evidence that rates for your average FTB's ie without huge deposits have reduced too?

I fail to see how it's going to kickstart the market if there's no-one buying at the bottom.

Any brokers on this?

Dan:_4

carolt wrote: »

But seriously - these rate cuts may be passed on - in the main - to existing borrowers.

But - speaking as a FTB - is there any evidence that rates for your average FTB's ie without huge deposits have reduced too?

I fail to see how it's going to kickstart the market if there's no-one buying at the bottom.

Any brokers on this?

You can get a 3-year fixed at 6.59% with a 10% depoist at the Nationwide. I don't think thats too bad. Might even come down after a product review following the recent cut.

Generali

Let's say we have a fairly-very mild recession next year. Growth of -1% over 2009, +1% in 2010 (below trend) and +2.5% in 2011 (a little over trend). In that case we could reasonably expect unemployment to rise until mid-2011 and then stabilise and start to drop quite quickly.

That means at a minimum we can expect to see house prices falling until 2011-12 if this fairly mild scenario comes to pass*.

So what happens in 2011? Unemployment starts to drop so house prices rise, right? Not necessarily. By that time, baby boomers are starting to be staring straight down the barrel of retirement.

As 50+ year olds often have great difficulty in finding new jobs if they lose theirs, many will have lost the last few years of pensionable income. So how can they make that money back? By selling the only big asset they have: the house. That is likely to keep a lid on prices for many years IMO. The longer that we keep our heads in the sand regarding pensions, the worse the problems will be.

fatpig_2

Dan: wrote: »

You can get a 3-year fixed at 6.59% with a 10% depoist at the Nationwide. I don't think thats too bad. Might even come down after a product review following the recent cut.

Yeah, but they won't lend you 10 times your income like they used to. And you'll have to prove it too.

lethal0r

Dan: wrote: »

Don't miss out by being too greedy

its not greedy to want your own home at a sensible price.

mr.broderick

lethal0r wrote: »

its not greedy to want your own home at a sensible price.

Define sensible

mr.broderick

Dan: wrote: »

http://news.bbc.co.uk/1/hi/business/7716086.stm

Looks like all the main banks, including the Rock WILL be passing on the full 1.5% cut - and so they should.

Anyway let us stick to the thread which is a good one and good news for people with mortgages, not been much good news recently.