Doom & Gloom

ukcarper

I hope all the doom and gloom mercahnts here are willing to live it a one bedroom flat for the rest of their lives because if house prices crash to the extreme they are wishing for no one will move unless they really have to and no new houses will be built.
Of course this won't happen house prices will continue to fall but not to the extreme some people on here seem to be hopling for.

ad9898_3

ukcarper wrote: »

I hope all the doom and gloom mercahnts here are willing to live it a one bedroom flat for the rest of their lives because if house prices crash to the extreme they are wishing for no one will move unless they really have to and no new houses will be built.
Of course this won't happen house prices will continue to fall but not to the extreme some people on here seem to be hopling for.

What do you mean by extreme ?, You're right in the respect of no one moving, we can see that at the minute, however, death, divorce, job displacement, unemployment etc.. will always require houses to be sold, and because prices are set at the margin, these prices will become the new normal eventually, but it all takes time, a long time.

As far as new houses being built, we don't need any, it's a myth pedaled by the Clown, the housing stock stands at 21 million, plenty to go around. In my small area alone their are over 200 houses for sale, any vendor of which would snap my hand off if I made an offer they find acceptable. No fields of tents required just yet.:D

ukcarper

Some people on here seem to be projecting falls of up 80% from the max, which I think is extreme. Are the 21 million in the right place I don’t see many empty houses where I live and rents are still high if fact about 8x my Mortgage. When people die if house prices are too low the people who inherent the house will rent it out this is already happening. Not every body who gets divorced sell their house in fact if children are involved most don’t. People who need to move will find it very difficult as if house prices drop that much most people will be in negative equity.

beingjdc

Anyway, if house prices crash that far, land prices follow. That's all that matters in terms of whether new houses are built - can you sell a house for the cost of the land, plus the cost of the house, plus say 10%.

But keep coming up with economically illiterate reasons why a crash (which will be great for the economy in the long-term) would be bad, it's funny.

ukcarper

how much do you think it cost to build a house.

ad9898_3

I think 80% is a little extreme, unless we have massive deflation of assets and wages. I see the figure on HPC.co.uk quite a bit, but not on here.

skap7309

I love these new threads that come along every so often saying that if someone wants to pay less for something they are full of doom and gloom. Get a grip.

To me, doom and gloom is being saddled with an unprecedented level of debt just to live in a substandard, small and badly built house. This crash can fall by 90% (i am NOT predicting this!) for all i care as long as it means a better life for people waiting to buy, then i unashamedly say let that happen.

If certain people (and it happens far too often) what to openly attack others for the above reason then i have no sympathy for them.

dandy-candy

I don't really get all the digs at the doom and gloom brigade - what is going to happen to the global economy will happen anyway no matter how much people on here want/don't want it to. The views of a group of people on MSE Forum are hardly going to sway world events :rolleyes:

mizzbiz

ukcarper wrote: »

I hope all the doom and gloom mercahnts here are willing to live it a one bedroom flat for the rest of their lives because if house prices crash to the extreme they are wishing for no one will move unless they really have to and no new houses will be built.
Of course this won't happen house prices will continue to fall but not to the extreme some people on here seem to be hopling for.

Unfortunately, we live in a one bed flat because House Prices are too expensive. Once house prices CRASH and BURN, we will then be snaffling a lovely three bedroom country cottage thank you very much.

The boom meant that FTB's could only afford 1 bedroom flats, so in fact, I think that the opposite view to your argument will be the case :-)

ad44downey

ukcarper wrote: »

Some people on here seem to be projecting falls of up 80% from the max, .

Name and shame one of them please. Or did you just make that bit up to make sure you got a few responses?

Dan:_4

dandy-candy wrote: »

I don't really get all the digs at the doom and gloom brigade - what is going to happen to the global economy will happen anyway no matter how much people on here want/don't want it to. The views of a group of people on MSE Forum are hardly going to sway world events :rolleyes:

Almost everyone on MSE (within this baord anyway) has a vested interest and will post accordingly.

In reality - it's pretty much impossible to forsee 2 or 3 years from now.

It's all a good laugh though.