Land Registry - 12.2% YoY drop in England and Wales.

StevieJ

!!!!!!? wrote: »

Absolutely, but the notion that because person x "won't sell for less than summer 2007 price" that the market will therefore remain at or close to that level is bunkum.

People generally buy and sell houses for practical reasons.

Very few people will have the luxury of saying "Well I was going to sell but not now because I think the market price should be much higher based on what I saw houses going for in August 2007".

There was an awful lot of speculative trading on top of that during the boom but this has now dried up. Those who speculated on prices continuing to go up and borrowed to get into the market will especially not have the luxury of sitting tight. Although of course, they may well find themselves unable to sell because of negative equity and waiting for repossession to play itself out.

All the factors that have boosted the market upwards have gone into reverse. There are no fundamentals around to pin prices at anything like the peak and all indications are that prices will go at least as much lower again as they already have.

The only questions left are 'how low will they eventually go?" and "how long will they take to get there?".

Absolutely, but the notion that because person x "won't sell for less than summer 2007 price" that the market will therefore remain at or close to that level is bunkum.

The prices will not be at 2007 levels but they will not be down 70% either, at some point there will be a compromise as buyers and sellers expectations converge, we all have different views on where this will be. My view is that it will bottom out and flatten soon, your view is different, it it further complicated by the fact the figures vary so much from area to area gives each of us a different anecdotal perspective (ref latest LR figures).