House Prices - Which way are they headed?

wolfman

HAMISH_MCTAVISH wrote: »

How many people do you know that saved more than £2300 last month?;)

Or more than £8000 since february?

Playing the waiting game was risk free last year. It's far from risk free now.

Given that purchases are still very, very low, and interest rates too. The spike, in my opinion is because of people that can currently afford to buy, getting in there before things change. I would say that's a minority though, which is why the increase won't be sustained. Also especially as interest rates will change at some point

It's not exactly a risk if I wait. I just get to save more. If I can't afford to buy here, I'll buy abroad. Simple.

It's a far bigger risk to buy when you can't afford to, or would be stretched when interest rates go back up.

I'm lucky enough to earn a fair bit above the average salary in London (the missus too) (we're in IT not banking!!! just to clarify), so I know if I can't afford a decent place with an affordable mortgage, then the market still has some way to go. I'm just saving and waiting for a mortgage I can afford, on a place I would consider acceptable. I'm talking about a 1 bed, or possibly 2 bed flat (not a box flat either) in zone 3-5 of London, nothing unreasonable.

chucky

carolt wrote: »

How nice to see we agree, chucky.

it was sarcastic - obviously doesn't come across very well on a forum.

i have no idea if they'll go down, they'll go up one day then go back down after a few years. none of us know, we can only assume.

carolt

You, sarcastic?

I'm shocked.

I'd just assumed your proplonged stay on here had finally taught you something about house prices.

mbga9pgf

HAMISH_MCTAVISH wrote: »

How many people do you know that saved more than £2300 last month?;)

Or more than £8000 since february?

Playing the waiting game was risk free last year. It's far from risk free now.

£3600 this month actually. £3200 per month average since feb.

And there are plenty of falls to come.

Wookster

LOOOOOOOTS farther down to go.

All the economic fundamentals are negative. Economic growth prospects are dire. Affordability is a problem.

Prices must drop.

Period.

V6Matt

Thanks for all the replies.

As expected there is quite a bit of uncertainty but the majority view would indicate drops, how far it will drop is anyones guess.

bendix

Up . .

No, wait . . I mean down.

But maybe .. .

oh i dunno.

Don't care either.

FCRangers

Another 20% down.

about Avg wage x 4 levels.

zcacmxi

By end of last year we saw falls of up to 50% in 1 bed flats in areas where there was massive oversupply. At that time prices in sought after towns (ubertowns) like Sevenoaks for family houses had hardly budged 5%..

In my area flats were down 25%, semis down 15% and detached down 10%. But once prices corrected, buyers returned and the supply shortage lead to prices stabilising.

chucky

FCRangers wrote: »

Another 20% down.

about Avg wage x 4 levels.

the UK average house price - earnings ratio is currently at 4.02