House Prices Fell 2.3% in January - What Does this Mean?

georgeLL

According to this article, house prices fell 2.3% during January. I'm wondering whether these prices will continue to fall or if this is as far as it will drop. I'm considering investing in property but want to do it at the right time. I've spoken to various people in the past and they were thinking that property would continue to fall during this year and it might not hit rock bottom until at least September of this year. What does everyone else think?

pinkshoes

No one has a crystall ball...

These % are based on a very very small number of house sales too.

In terms of investing in property, there's some desparate people out there that NEED to sell, so a good time to strike a good bargain. It really depends on what you can buy it for, versus what you could rent it out for. Do the maths and decide for yourself.

georgeLL

Very good point. I guess it's about assessing every opportunity on its merits and deciding from there. It's quite scary when you're new to the property game though and mistakes can be expensive and sometimes impossible to rectify. Very interesting post though.

Bethankim

It really depends are you looking to buy as an investment or as a home, if its a home donest matter when you buy as your not in it to turn a quick buck, if its investment then well get your Chrystal ball out...

I will say here in Nottingham - things are moving i had my energy check done today and the man that did it is booked solid, 3 houses have sold near by.

one of my fellow dog walkers has sold her house after 2 weeks, she accepted 5K below asking price. o i think more people are looking and buying..that by its nature means supply and demand will change and possibly slow the decreases.

I just have my fingers crossed mine will sell, its 25K below what she accepted...

googler

As the sample size (number of sales) becomes smaller and smaller, I'd suggest the averages, rises, falls and other statistics based upon those sales become less and less reliable....

Robert_Sterling_3

House price statistics are like a bikini.
What they reveal is interesting but what they conceal is ?????

penguine

In the last recession, house prices fell for several years then remained stable for several years before starting to rise again.

Given that this time around we've had banks (and certain countries) pushed to the brink of economic collapse, I think the chances of us having the shortest house price crash in history are close to nil.

ukcarper

penguine wrote: »

In the last recession, house prices fell for several years then remained stable for several years before starting to rise again.

Given that this time around we've had banks (and certain countries) pushed to the brink of economic collapse, I think the chances of us having the shortest house price crash in history are close to nil.

I agree to some extent but there are other differences like falling instead of rising interest rates

mitchellst3ve

So, would you guys say there is still quite a way to go with house prices falling? It seems to me as though they will continue to fall for quite a while but only at a very short rate (which will reduce each month).

penguine

ukcarper wrote: »

I agree to some extent but there are other differences like falling instead of rising interest rates

This is likely to prolong the fall in house prices, rather than stop it. Interest rates have fallen almost as far as they can (we're not going to get a negative base rate) and they're not going to stay this low forever. Once they go up again, a lot of homeowners will start feeling the pain.

tommy75

ukcarper wrote: »

I agree to some extent but there are other differences like falling instead of rising interest rates

Doesn't this just hold off the inevitable? If house prices are still falling with historic low rates, what would the fall be like if rates were long term average (7% ish?) or even higher? And these interest rates won't stay low for ever will they? We have to pay back the massive debt at some point whether it be now, 2 years or more.

I must point out that I have no idea what Im talking about.