Why house prices are certain to fall

new_home_owner_3

To many posts on this matter, i can only see house prices stabalising and then starting to go back up when things start to pick up.

It makes me laugh manafacturing decimated, i work for a large car maker and due to the shortage of cars all the models we build bar one, have had to go on shifts and are on compuslory overtime, and this is due to sales.

Interest rates will stay low for a few years, so there wont be many forced sales, im not saying you wont pick up the odd bargain, plus banks are not forcing reposessions through, as they know selling a houses in negative equity will not get their money back.

Ive got a mate he has declared himself bankrupt, and northern rock have let hime keep the house as long as he makes certain payments a month, he owed them 120,000 after he had remortgaged a few years back, to have work done, and the house was only valued at 90,000 pound.

No one wants to see families thrown out of their houses and i dont think it will happen.

Only time will tell, but usually forced sales push prices down the less of them the less house price falls, and the only way there will be forced sales is if the interest rates shoot up very soon, which i just dont think will happen,

good luck to you all, i just hope you potential buyers who have been hanging on havent missed the boat.

IveSeenTheLight

new_home_owner wrote: »

To many posts on this matter

.......good luck to you all, i just hope you potential buyers who have been hanging on havent missed the boat.

I thanked your post in general, but there is no need for and there are too many posts which have the comment about missing the boat.

It's not needed.

mbga9pgf

good luck to you all, i just hope you potential buyers who have been hanging on havent missed the boat.

How quaint and original. I think you will find your financially reckless mate out on his !!!!! pretty quickly once the election is done and dusted; the banks will not be able to keep this up forever you know. The mortgage support schemes have a shelf life as long as 1 May 2010

zappahey

new_home_owner wrote: »

It makes me laugh manafacturing decimated, i work for a large car maker and due to the shortage of cars all the models we build bar one, have had to go on shifts and are on compuslory overtime, and this is due to sales.

I'm not in the UK, so can't see this first hand, but is there really a shortage of cars?

I know that, over here, I have seen 0% finance deals on cars for the first time. I don't recall ever seeing that before.

julieq

mbga9pgf wrote: »

How quaint and original. I think you will find your financially reckless mate out on his !!!!! pretty quickly once the election is done and dusted; the banks will not be able to keep this up forever you know. The mortgage support schemes have a shelf life as long as 1 May 2010

Really? I can see banks setting up divisions to manage property for rent rather than take a loss on mortgage debt if repossessions became a serious problem. I'd certainly be looking at that in their position, though that possibility is receding fast.

And this is sample size one, not the whole population. Most homeowners (overwhelmingly) are not in arrears AT ALL. Most have significant equity. Most took their mortages out at rates much higher than the current BOE ones and so can afford those rates.

This all has the sniff of desperation now. Prices are rising, houses are selling. Increasing elaborate juxtapositions of events are having to be used to explain that in fact the end of the world is indeed just a few months away.

new_home_owner_3

mbga9pgf wrote: »

How quaint and original. I think you will find your financially reckless mate out on his !!!!! pretty quickly once the election is done and dusted; the banks will not be able to keep this up forever you know. The mortgage support schemes have a shelf life as long as 1 May 2010

werent you the guy who was telling everyone not to buy until next year?? I know you was ive read your waffle before.

Im sure it was something to do with that you hadnt saved a big enough deposit, or wouldnt have a big enough deposit until 2010, what actually was it?

nevermind hey, maybe when the general election happens, the conservatives will come in and crank the inteerest rates up, just so you can get a house, oh wasnt it may 2010 when you will be ready to buy.

Some people post what they want to happen, when in reality they know they are fighting a losing battle.

mewbie_2

Good OP... I thanked it.

Really2

Don't do formulas for house prices but I will give it a go.

B+OLL=OX

new_home_owner_3

zappahey wrote: »

I'm not in the UK, so can't see this first hand, but is there really a shortage of cars?

I know that, over here, I have seen 0% finance deals on cars for the first time. I don't recall ever seeing that before.

Its mainly second hand cars, they have put it down to the scrappeage scheme, i bought my new car in may, and its worth more now than what it was new according to parkers, mind you i did have a 5000 pound discount.

Where I work they only build what have been ordered, as each car is different spec, what you have got to remember is a lot of car manafacturers had downtime in the last 12 months, this was when no cars were made, then the scrappage scheme came in causing a shortage of new cars and second hand, my mom had to wait 1 month for her 59 plate, if the market was flooded with new cars like it was when i bought she could have got it within a few days.

It might break some people hearts, i come on here and seen posts of why should we save car manafacturers

Really2

On a more serious note what about housing stock, Available Stock and future building plans etc.

They all will have an impact on HPI or HPD (HP deflation)