Why arent HP falling fast enough thread

besonders1

I wonder whether the people who have come away from the "denial" stage will be taking their home off the market rather than reduce it if they can't get 2007 prices for it.

Austin_Allegro

besonders1 wrote: »

I wonder whether the people who have come away from the "denial" stage will be taking their home off the market rather than reduce it if they can't get 2007 prices for it.

I guess there are always going to be fantasists who won't accept that the 'profit' on their house was always only theoretical and who will want to keep their properties up for sale until kingdom come; what puzzles me is what the EAs get out of it!

illzlee

I guess there are always going to be fantasists who won't accept that the 'profit' on their house was always only theoretical and who will want to keep their properties up for sale until kingdom come; what puzzles me is what the EAs get out of it!

exactly my point, if stated a little clearer!

ad9898_3

Yoshua wrote: »

Only a fool would buy any property now even for heavily discounted bargin prices.

Everyone knows next year will see further bigger drops and eveyone also knows that it will be a long time before we see any stability.

The only surprise is why they still havent fallen more than they have?

Come on Yosh, it takes a long time, give it chance:D, there are at least 10 houses I would be interested in near to me that have fallen between 10-20% since July !!, the only reason I have no interest, is next year there will be even more choice and prices will be down further.

If this was the bottom of the market, I would buy, but it isn't, so there is no point.

fimonkey

I agree we're not near the bottom yet. My limited understanding of this whole mess is that there will be more job losses = more forced sellers next year. Plus the difiiculty in obtaining a mortgage without substantial deposit will continue to drive down prices.

For that reason, as a potential FTB I've put my money into a fixed high interest account (after heading warnings about interest rates dropping). If I am to listen to further warnings then we are about to enter a period of v low, possibly zero, interest rates, possibly deflation followed by difficult to manage inflation in 2-3 years time. .. Whilst interest rates are still low, but inflation kicks in, that'll be the time to buy IMO. Not happened yet.

Source of my info is mainly moneyweek and moneyhospital.

crazygaijin

Even if interest rates go as low as they are in Japan right now (Bank of Japan base rate 0.1% at the moment) its ok to have cash savings because we are going to be looking at a period of deflation. If your money is in the bank getting virtually no interest or under the mattress its the same, cash is still king because its going up in value compared with everything else (not other currencies though).

But our crazy government is going to try and print its way out of this catastrophe. They will go into printing overdrive even more than the Americans. Truck loads of new money will be printed every week which we all know what that will mean. Hyperinflation, Zimbabwean style.

So your average 2 bed terraced house in London which you may be able to buy for about 100K after the deflationary period will be looking at being worth literally millions of pounds. This sounds like a lot but not if you have to take a wheel barrow full of 50quid notes just to buy a loaf of Tesco value bread.

fimonkey

Crazy, I see your point - are we saying the same thing? The 'experts' are predicting deflation followed by inflation, but not raging inflation Zimbabwe style (though granted anythings possible).

As I understand it, during a period of deflation, cash (even at 0% interest) is good, but as soon as inflation hits it begins to loose value. THAT'S the time to therefore take on debt, because as inflation rises, so the relative value of your debt (mortgage) drops. - Have I understood? - If so, then as I posted above, that's the time to buy.

domcastro

Yoshua wrote: »

Only a fool would buy any property now even for heavily discounted bargin prices.

I just bought a house. Reasons:
1. I had a huge deposit because of money I made in the HPI. I am prepared to lose 25% of it (the house I've "bought" (soon) had the 15% already off). This means altogether I've still made a whopping profit from just living.

2. I have two dogs and it is hard to find somewhere decent to rent. The house I'm currently renting is substandard (I've owned for 10 years previously) and nearly killed me with Carbon Monoxide as they hadn't checked the gas fire for the gas safety certificate

3. I've been renting 3.5 months and I've already had my S21 eviction notice as my landlord has sold the house

4. When I search for houses to rent around here - a lot of the houses are also for sale. I don't want to have to move every 6 months and therefore pay £200 fees each time and have to save up each time for another deposit as I won't be getting one deposit back in time for the next move. As well as removal costs every six months

5. My rent is £800 per month, my mortgage will be £646

The house I've "bought" was 240k at peak, I got it for 205k. Even if it loses another 50% I won't be in negative equity (because of the HPI money)

So yes my asset will depreciate pretty quickly but foolish? No. I'm the happiest I've been for months. A huge weight has been lifted. I don't obsessively check this forum, BBC news, HPC forum, Nationwide and Halifax figures, property bee, rightmove etc.

Yes, I could wait - but until landlords stop using tenants as a way to make money while the house is for sale and actually offer decent long term tenanvies - why make myself miserable?

I don't feel a fool - I made a wad and now may lose up to half the wad - still got half a wad though

fatpig_2

House prices are falling at between 1 and 2% every single month. You can't really hope for any better than this.

besonders1

I have noticed that house prices are coming down, I am bit disappointed some of the reductions are only 5K from the peak but I don't think it has made much difference in terms of it selling. I wish they would come down a bit faster. Message to all EA's "get those houses sold" (and back to affordable levels so we can all get buying again)