House prices set to crash from this point on

chucky

brit1234 wrote: »

House prices set to crash from this point on

what again Brit!?!

i though that you'd already confirmed that prices were already falling

nembot

chucky wrote: »

no wish list here - but a bit more perspective is required bot man.

the fundamentals are much better than they were in September 2008 - nobody can argue with that, so the fundamentals have improved.

we had 1.6 million unemployed pre-recession we have 800,000 more. that's not a huge amount with the kind of recession we've had/been in.

rates are an interesting one though. the impact is over stated though it won't affect that many people who have mortgages but will definitely affect FTB's - what will hurt people more is the reduction in disposable income and those that are unable to re-mortgage. there's the issue.

chucky

why did you post a picture of you and your mrs?

nollag2006

Just viewed the clip - great opening line from the interviewer "Jonny Boy correctly predicted that house prices were going to crash in 2007".

She forgot to add that he has constantly been predicting house prices were going to crash since 2002.

Even a stopped clock is right twice a day

Some of the errors that this reporter missed coming out of the mouth of this VI are pretty shocking:

housing transactions running at 40,000 per month... no they're not (truth is double that)
house prices are now down, on average, 20% from their peak... no they're not (truth is 7% and gap is narrowing)
jonny boy predicted house prices would fall 15% in 2009... no he didn't (he called 35-50%)
unemployment is rising at 100,000 per month ... no it's not (total number of unemployed rose 21,000 in the last qtr of 2009 https://www.statistics.gov.uk/pdfdir/lmsuk1209.pdf)


When was this thing shot? It seems to be a very old clip. .. at least Jonny is still trotting out the same old nonsense despite the evidence around him

HammerSmashedFace

Dan: wrote: »

It's only 0.5% + I would have had 2 pay rises by then.

You're lucky then Dan, many will not, we also have fuel pushing up 'cost push inflation' too. I went past a fuel station the other day and even though I don't take much notice of cost having a company car, I did notice it was £1.14 litre again, that is 20% up on last years low. This cost is only going to trend upwards over time, and in my view will outstrip any wage increases, those who get them anyway.

Mr.Brown_4

nollag2006 wrote: »

housing transactions running at 40,000 per month... no they're not (truth is double that)
house prices are now down, on average, 20% from their peak... no they're not (truth is 7% and gap is narrowing)

Those figures will differ quite widely according to region of course. Always best to look at the facts on the ground - where you are planning to sell or buy to get the true picture. Doesn't look quite so rosy round here I must say.

nollag2006

True - some areas are doing much better than others. Pity this nuance was lost on Jonny boy. He was too busy lecturing the audience with his usual generalities and falsehoods.

jojo1964

For the vast majority of mortgage payers, does the fact that prices go up or down really matter, most people buy a house to live in, and regardless of its worth on the open market, they still will be living in it. Again with interest rates, we have had it good for a while, and many will have been reducing the capital owed by making overpayments, so if rates rise they will only be going back to what they had previously been.

Mr.Brown_4

nollag2006 wrote: »

True - some areas are doing much better than others.

That's probably why I may seem bearish to some. It is a reflection of local area, local prices, local prospects.

nollag2006

jojo1964 wrote: »

...with interest rates, we have had it good for a while, and many will have been reducing the capital owed by making overpayments, so if rates rise they will only be going back to what they had previously been.

Sage words jojo - I know that many folks have been using the current low interest rates to heavily overpay on their mortgages.