House prices bottomed ?

StevieJ

Thrugelmir wrote: »

Before wholesale funding and the demutilisation of the building societies into banks. A 25% was much the norm.

I disagree the norm was 10% with MIG insurance paid by the mortgager to cover risk (say over 80%).

inspector_monkfish

Bluebirdnick wrote: »

I'm not going to be buying one until there is a serious reduction in house prices. And I'm a would-be FTB. I don't speak for all FTBs, but my friends are the same as me - we are going to wait until the market gets itself back to an affordable level. There has been a massive shift in the last year - we're just not going to rush to get involved, whereas we were trying to in 2007 as we were afraid that if we didn't get in young, we would never be able to afford a house.

And that's the issue. Without new people entering the market, prices have to come down as demand will drop. Quite a few of us will lose our jobs in the coming months too, further reducing the likelihood that this wave of potential FTBs will be darkening the doorstep of an estate agent any time soon.

are you in cardiff ?

StevieJ

Bluebirdnick wrote: »

And that's the issue. Without new people entering the market, prices have to come down as demand will drop. Quite a few of us will lose our jobs in the coming months too, further reducing the likelihood that this wave of potential FTBs will be darkening the doorstep of an estate agent any time soon.

Up to you, but I wouldn't hold your breath.

Bluebirdnick

inspector_monkfish wrote: »

are you in cardiff ?

No. I'm from there, but I live in Birmingham.

inspector_monkfish

Bluebirdnick wrote: »

No. I'm from there, but I live in Birmingham.

jeez, u must have a proper messed up accent !!!

Thrugelmir

StevieJ wrote: »

I disagree the norm was 10% with MIG insurance paid by the mortgager to cover risk (say over 80%).

Interesting. 90% mortgages the norm.

Understand your bullish views now.

Best to park this for the moment. Lets see what the forecasts are like for interest rates and wholesale funding at the end of the year.

Graham_Devon

Bluebirdnick wrote: »

I'm not going to be buying one until there is a serious reduction in house prices. And I'm a would-be FTB. I don't speak for all FTBs, but my friends are the same as me - we are going to wait until the market gets itself back to an affordable level. There has been a massive shift in the last year - we're just not going to rush to get involved, whereas we were trying to in 2007 as we were afraid that if we didn't get in young, we would never be able to afford a house.

And that's the issue. Without new people entering the market, prices have to come down as demand will drop. Quite a few of us will lose our jobs in the coming months too, further reducing the likelihood that this wave of potential FTBs will be darkening the doorstep of an estate agent any time soon.

Brilliant post.

Think yourself lucky. I was split 50/50 between the thought of properties crashing and never being able to afford a home.

In the end, I comprimised, went for Shared Ownership, simply because this way, I only lost out on a quarter of the house price if they did decline, therefore shielding myself from any crash. I also benefitted if they rose, just not as much.

So kind of half way house for me and it's the decision I took and one I have to live with...now in neg eq!

However, listening to the people around me, everyone was telling me house prices only ever go up. Get on the ladder or you never will.

I just wish at the time I had listened to the "fools" on HPC. It was end of 2005 when I signed the contract. So got a little HPI to shoulder the falls, but not enough. And yes, I still get the "you fool for buying into shared ownership", but there really wasnt much choice bar putting a debt noose around my neck.

Had I waited, I would not only have a little more cash, but also benefitted from the falls while sitting in a rental.

Hey ho. Just glad I didn't listen completely to the "house prices only ever go up" gang.

dixie_dean_2

I think there are still fair falls to come. Once the interest rates start going up and people come off their fixes and find they can't get a decent mortgage. Lots more repossessions, houses being sold off cheaply forcing the market down further. Unemployment still growing too. I think in a lot of industries the pinch is only really starting to hit now (like steel) and I don't think the ones that felt it first are anywhere near recovery.

pizzagirl

Yes, the spectre of massive interest rate rises looms over the housing market.........

inspector_monkfish

pizzagirl wrote: »

Yes, the spectre of massive interest rate rises looms over the housing market.........

does it?

when will that be then ???