1 in 9 mortgage holder in NE

chucky

ad9898 wrote: »

I believe it's much higher than 1 in 9, don't forget many people will not acknowledge what price drops their property has taken, and if they were to try and sell it for what they think it's worth it would probably languish in the EA's window for a year like most do now, before reality hits home and they drop the price or take it off the market until things 'return to normal.'

you're right these people in negative equity can't obviously sell and move on so they're going to have to sit tight and repay their mortgage until things return to normal.

it's just going to make the supply of property less and less - we all know what happens when there is a lack of supply don't we... demand increases :beer:

ad9898_3

chucky wrote: »

we all know what happens when there is a lack of supply don't we... demand increases :beer:

Although I agree in principal, and it's a compelling argument, I just don't see it much in practise, here are the stats from my area.

2007- 395 houses sold
2008- 150 houses sold
2009, upto May 31st---- 32 houses sold.
Houses currently for sale on Rightmove, 233. Many of them very desirable, average selling time for my area is 267 days.

It's an old argument, but if the price is wrong there is no demand.

chucky

ad9898 wrote: »

Although I agree in principal, and it's a compelling argument, I just don't see it much in practise, here are the stats from my area.

2007- 395 houses sold
2008- 150 houses sold
2009, upto May 31st---- 32 houses sold.
Houses currently for sale on Rightmove, 233. Many of them very desirable, average selling time for my area is 267 days.

It's an old argument, but if the price is wrong there is no demand.

however low the volume - if there is a house that sells that price is what marks the market be it high or low.

over the last few months prices have increased, these will be the new market prices just as it did when they were dropping.

FoxtonsRIP

Lotus-eater wrote: »

http://news.bbc.co.uk/1/hi/business/8095612.stm

Interesting for everyone who says this isn't as bad as the last recession.

But it has emerged as a problem much more quickly, because of the very sudden fall in house prices from their peak in the middle of 2007 to the first quarter of 2009.
In that time UK house prices fell by about 20%, whereas it took six years for them to fall by 15% between 1989 and 1995.

Yes, and this recession is far from over.

StevieJ

ad9898 wrote: »

It's an old argument, but if the price is wrong there is no demand.

Plenty of demand in 2007, was the price right then

mewbie_2

StevieJ wrote: »

Plenty of demand in 2007, was the price right then

It's a good point but.

If the product will cost more tomorrow then yes I'll buy it today, even thought it may seem over priced now. But if its cheaper tomorrow then I won't.

ad9898_3

StevieJ wrote: »

Plenty of demand in 2007, was the price right then

Yes, due to....

1. Jump in or you will never afford to buy.
2. Lax lending........... what do you earn, 25k, no worries, here is 300k.
3. Dumb borrowing......... I take home 3k a month, so I should be able to afford that 2.9k mortgage.
4. Property only goes up.
5. No deposit.......... no worries here is a 120% mortgage.

All these created the myth of affordability....... and so it led to demand, come on Steve, this stuff is easily within your grasp.

StevieJ

ad9898 wrote: »

Yes, due to....

1. Jump in or you will never afford to buy.
2. Lax lending........... what do you earn, 25k, no worries, here is 300k.
3. Dumb borrowing......... I take home 3k a month, so I should be able to afford that 2.9k mortgage.
4. Property only goes up.
5. No deposit.......... no worries here is a 120% mortgage.

All these created the myth of affordability....... and so it led to demand, come on Steve, this stuff is easily within your grasp.

Thanks for the lesson AD, jolly decent of you In the immortal words of Sham69 We're going down the pub :beer: