Homes could fall 40%

dopester

whathavewedone wrote: »

There are powerful and wealthy people who bought property in 2006 and 2007, not just the "sheeple" as they are called on HPC. They stand to lose a lot if property crashes by 40% and doesn't reach 2003 levels until 2013.

:rotfl:

Previous stock-market crashes and real-estate crashes, and land-price crashes in history have seen important people lose out.

Tough luck miladdo.

carolt

Quick back-of-envelope calculation shows that the difference for me between the houses I want to buy falling 32% from peak and 40% from peak is about 30K, or - to look at it another way - probably £190/month over the life of my mortgage, ie several nice meals out, say per month.

So this voter says - don't meddle!

Let them fall, and then I'll have much more disposable cash to prop up the rest of the economy.

Low house prices = thriving economy.

RobertoMoir

Wookster wrote: »

This can only be a good thing. Lower property prices would be excellent for people in Britain, first from an "owning your own home" and secondly lower property prices will lower the cost of living as shop rentals (and therefore the business needs to recover less in its selling prices) will be lower.

Lending will not resume normally until property prices hit the trough.

Indeed

Wookster wrote: »

Now if Crash would just stop messing with useless, waste of money initiatives.

Hear hear. Brown needs to accept that sometimes the medicine just won't taste very nice no matter what, and more importantly to realise that the longer he delays things the stronger the dose of that medicine will need to be in the end.

MJS996

A 40% drop would (just) put me in negative equity, having moved in May 2007.

Am I bothered? No. Should I be? Maybe. My big concern is staying employed - all the time I've got a job, I can and will ride out whatever happens, even we do end up in NE, we still need a roof over our head etc. Now, if I were to lose my job, then I'd be royally up the creek regardless of the drop in prices :eek:

alared

Don`t forget this is the "experts" talking.

torontoboy45

I failed my economics 'o' level so can someone explain why the health of the UK economy is so dependant on a return to big HP increases?
the financial services industry accounts for 25% of the econ. (or at least that's what I think I read recently) so its importance is obvious, but the markets don't begin and end with residential mortgages.
I see the logic of freeing up the loans market for the benefit of businesses but not to kick-start run-away HP's, with all the misery and social divisiveness they entail.

can anyone enlighten me?

prowla

The last thing we need is for the government to try and re-inflate the housing bubble.
Things got out of hand and prices went up and up.
A correction of at least 40% is required.

tomstickland

I see a good future for journalists....

house prices could fall <please select a number from the list below> % in the next <please select a time period>.

Available numbers:
100%99%98%97%96%95%94%93%92%91%90%89%88%87%86%85%84%83%82%81%80%79%78%77%76%75%74%73%72%71%70%69%68%67%66%65%64%63%62%61%60%59%58%57%56%55%54%53%52%51%50%49%48%47%46%45%44%43%42%41%40%39%38%37%36%35%34%33%32%31%30%29%28%27%26%25%24%23%22%21%20%19%18%17%16%15%14%13%12%11%10%9%8%7%6%5%4%3%2%1%0%

Wookster

RobertoMoir wrote: »

Brown needs to accept that sometimes the medicine just won't taste very nice no matter what, and more importantly to realise that the longer he delays things the stronger the dose of that medicine will need to be in the end.

Exactly - what Crash needs to do is keep his powder dry to help people who's lives are shattered. That and improving education to that we have a more skilled/ efficient workforce.

pandamonia

to be honest the market will sort its self out, it does not need intervention from the government. history tells a tale of medling governments. if they rise naturally and sensibly then its best for everyone.

Secure borrowing, little risk, affordable homes and no sharp rises or crashes.