price crash and value

Bob_zodiac

Some people think that there will be a price crash in the near future.

If it did happen what percent would the cost of homes fall by?

5%
10%
20%
50%

meanmachine_2

23.75%

OK? Next!

The real answer is that, should house prices correct, they'll correct by different amounts, depending on type of property and location.

Desirable detached properties in catchment areas hardly lose value, meanwhile 2bed new build flats outside of London, or ex-LA properties will lose a lot more than the average.

But that's pre-supposing there is a correction.

[Deleted User]

Hang on while I get my crystal ball....it's hard to say mate, I for one don't belive there will be a crash in the near future.

BobProperty

On average from now to bottom of market about 25%.

manhattan

in my local area 30% drop

devils_advocate

A house that costs £100,000 and increases in value to £200,000 has increased in value by 100%. However a house that costs £200,000 and declines to £100,000, has decreased in value by 50%

My own view, FWIW is that there wont be a crash, because that would mean that prices are so much lower from 1 week to the next. However I do think that at some point in the next 5 yers prices will hit about 30% to 35% lower than at the peak.

Woby_Tide

near future? good grief, this forum gets more like Doctor Who, we've had this topic every week since 2004, the answer is no-one knows, somewhere between 100% and -100% at some point in the future(and the past)

dander

100% probably. I predict that by 2008 newspapers will be giving houses away free like they give away DVDs now.

As technology improves, houses will get smaller, and therefore the price of land will cease being an issue. We will all own some kind of matter converter that will allow us to carry matchbox sized houses around with us, and when we want to go home we will crumble ourselves down small enough to tuck ourselves away inside.

Oh, and we'll also all fly around in special personalised mini-planes and wear white pvc clothes.

zag2me

If prices keep going up at their current rate of 1% a month, thats 12% this year again. Now if property drops 25% in 2 years time, then they will only go down to the same price they are at today

Thats my random calculation for the day

meanmachine_2

Haha.

I love how bullish zag has become now he's on the ladder.

The human brain is a wonderful thing.

Alas, your maths are way off. A quarter drop doesn't take you back to where we are today, does it?

Sadly, the latest official stats from the govt (so beware their authenticity) posted a 1.2% fall in Feb.

Again though, take everything with a pinch of salt and don't extrapolate anything. Past performance is not a reliable indicator of blah blah

mike_the_bike_2

I predict that houses will drop by 100% over he next 3 years..Obviously on this basis I will have sold my house by tomorrow as other ignorant people don't realise this..I will then put all my money that I have into buying a house when i accurately predict the bottom of the market. I will also borrow ten times my salary..and buy a few houses to buy to let

Within another three years of the bottom of the market all these houses will have doubled in value.

I will then be able to be terribly smug and post on message boards how I have doubled my money