Drop %?

manhattan

What % have average uk house prices dropped from its peak to now?

Thanks.

HAMISH_MCTAVISH

manhattan wrote: »

What % have average uk house prices dropped from its peak to now?

Thanks.

12.8% as per Nationwide.

It varies from 2% to 17% with everyone else.

The majority of measure put it around 12% to 14%.

manhattan

Thanks for that.

nearlynew

So if there have been 2-17% drops does that mean that the population has decreased?

Eric_Pisch

HAMISH_MCTAVISH wrote: »

12.8% as per Nationwide.

It varies from 2% to 17% with everyone else.

The majority of measure put it around 12% to 14%.

depends on the area, my identical neighbours house sold a couple of months back for 8% more than i paid for mine near the peak of the boom :T

Eric_Pisch

nearlynew wrote: »

So if there have been 2-17% drops does that mean that the population has decreased?

no

You have many people defaulting on there houses, these are normally sold at auction for allot less than market value for speed.

Many people especially those who experienced the last recession go into batten down the hatches mode so do not wish to take the financial risk of moving do demand is reduced, reduced demand = lower prices.

Banks where / are still only lending a tiny fraction of what they where for mortgages and are demanding high LTVs / deposits so the few buyers out there can pick and choose and drive hard deals on those desperate too sell.

HammerSmashedFace

Depends really, the official figures are as Hamish has posted although they don't really tell a story, as in many areas, including the areas I used to look in, prices are still decreasing and are at least 20-25% down on peak.

And I feel I live in a nice area, green fields and countryside within in walking distance (Peak District), major conurbations (Manchester etc..) within easier commuter distance by car, but far enough away that crime, anti-social behavior etc, is pretty non existent. Wouldn't want to live anywhere else really, best of both worlds.

mr_fishbulb

Eric_Pisch wrote: »

no

You have many people defaulting on there houses, these are normally sold at auction for allot less than market value for speed.

I didn't think auction sales were part of most of the indexes

Really2

mr_fishbulb wrote: »

I didn't think auction sales were part of most of the indexes

Also defaults are no that high considering (75K forecast at the start of the year now revised down to 45K).
Most defaults are being sold to before getting to auction.

HammerSmashedFace

Really2 wrote: »

Also defaults are no that high considering (75K forecast at the start of the year now revised down to 45K).
Most defaults are being sold to before getting to auction.

Revised only due to low IR's which along with QE and borrowing are also unsustainable. My feeling is rates will probably have to rise way before the economy is on a sounder footing (RPI-X is only going one way). The defaults will come, it's just the timing of those defaults that have moved.

The housing market is on a tightrope, its hanging in the balance, but fundamentally it really has nowhere to go, values will fall. The only thing that can stop it in the medium/long term is large bouts of wage inflation..... this seems very unlikely.

Really2

HammerSmashedFace wrote: »

R My feeling is rates will probably have to rise way before the economy is on a sounder footing (RPI-X is only going one way).

BOE have already said they expect CPI will go up in the short term (around 3%) and then come back down again.
They are not going to have a knee jerk reaction to it as they no it will effect growth.
RPI-X is not relevant for BOE there target is based on CPI. RPI-X is going up because of house prices also, surely that will fall if house prices do?

My point defaults was more to do with the posters above and not a statement of the market.