Halifax December Figures -2.2%

Cat695

Lotus-eater wrote: »

Honestly, no joking, it was his wifes

Now why can't I find a lovely lady like that??

poppy10_2

lethal0r wrote: »

i need to see the graph show me the graph!!!!!!!!!!!!!

You love it....

Lotus-eater

poppy10 wrote: »

You love it....

The red line seems to be following the perfect curve that I expected if the crash followed the same direction as the last one. It will be interesting to see what the blue line does with the next figures.
Anyone who expects house prices to be back to "normal" in two years (like my family at Christmas) had better be ready to have an alternative plan (unlike my family :rolleyes:)
BTW they will be back to "normal" in two years (ish) just not the normal you expect

mitchaa

poppy10 wrote: »

Average house price:
Dec 2007: £197,074
Dec 2008: £159,896

Difference= £37,178 in twelve months. That's 18.9% annual fall

Prices have fallen on average £3,078 per month over the last year.

BBC article states -16.2 YOY, you sure your Dec 07 figures are correct??

On an annual basis, prices were down 16.2% from December 2007, the biggest annual fall since records began

The Dec figure of £159,896 is exactly 20% down from its Aug 2007 peak of £199,770

Fall of £40,874 (20%)

On average, house prices have lost 1.25% per month over the last 16 or an average £2554.62pm

In comparison....

Nationwide peaked in Oct 2007 with £186,044 and November showed £158,442.

Fall of £27,602 (14.84%)

On average house prices have lost 1.14% per month over the last 13 or an average £2123.23pm

Nationwide of course 1 month down.

Interesting.......Sustainable though

ad44downey

Only one word to say about house prices really:

TIMBER!

ad9898_3

I think this makes the Halifax Index over 20.2% down from peak, with 3 months recession behind us, 12 months at least in front of us, interest rates doing nothing for house purchases as 25% deposit is required for decent rates and to top it off FTB's are becoming increasingly aware that another 12 months of drops are an absolute certain.

This is great news for the economy in the long run, more money to spend on things other than mortgage debt, parents will be able to choose whether to both work or one stay at home and look after young children, instead of having to work 25 hours a day to service the debt on a shoebox.

Short term pain for some, long term gain for more or less everyone.

StevieJ

Cat695 wrote: »

The average house price has dropped by
over 16% according to halifax

(which includes repo/auctions etc which the LR do not)

But not cash buyers, and great if you are going to buy a repo.

poppy10_2

StevieJ wrote: »

But not cash buyers, and great if you are going to buy a repo.

Never quite understood this from proberdee investors. So when prices are rising, it's a great time to invest as you get the big capital gains, and when prices are falling, it's a great time to invest, because you can snap up properties cheaply. Is there ever a bad time to invest in property?

chucky

poppy10 wrote: »

Never quite understood this from proberdee investors. So when prices are rising, it's a great time to invest as you get the big capital gains, and when prices are falling, it's a great time to invest, because you can snap up properties cheaply. Is there ever a bad time to invest in property?

no all times are good - there isn't unless you can't afford it and borrow too much and it causes you financial difficulties.

there would be different strategies that are needed in different market environments. also individual circumstances apply to different people.
here are some scenarios that may apply to different people.

do you sell so that you can a bigger property and get a better discount than you sold for?
do you look at capital gain or do you look at yield?
buying now means property is cheaper and will be good if you believe property will go up.
do you look at offsetting your tax bill?

there are lot's others to say that you shouldn't buy/invest in property too.

mitchaa

ad9898 wrote: »

I think this makes the Halifax Index over 20.2% down from peak, with 3 months recession behind us, 12 months at least in front of us, interest rates doing nothing for house purchases as 25% deposit is required for decent rates and to top it off FTB's are becoming increasingly aware that another 12 months of drops are an absolute certain.

Now now, where has the extra 0.2% come from:rotfl:

Simple maths...

£159,896/£199,770 = 0.800400, so if you want to be pedantic its not quite showing 20%, its actually 19.99%;)

12 months coming drops certain? Im not so sure, houses really are getting very close to affordability NOW. Im not saying there wont be more declines, but im pretty sure there wont be another 12 months worth.