House prices to suffer 'significant correction' in 2010

Mr.Brown_4

Euphoria1z wrote: »

either that or your completely and utterly wrong.


to someone who doesnt make very much money (like me) house prices are over valued and damn expensive.

to someone whos rich and has tonnes of money, the prices probably arent over valued.

i can see the rich getting richer and poor getting poorer like in 3rd world countries.

There aren't enough rich to buy all the housing stock.

de1amo

back in the late 70s mrs thatcher was said to have saved us from the humiliation of becoming a 3rd world economy-a first--but many say she sold the silver and just delayed the process--i have lived in 3rd world countries and its as euphoria says--does anyone want to buy a 2 bed flat for 175k??

Graham_Devon

IveSeenTheLight wrote: »

The thing to understand is that not everyone buys, therefore currently the top 70% of earners (because 70% of the property is owner occupied) need to be averaged

LOL, what?

Spartacus_Mills

brit1234 wrote: »

No, it was stopped correcting it self when they slashed interest rates to 0.5%, cut stamp duty and all the other stimulas.

At the end od the day even now house prices are extremely over valued and a long way still to fall.

I do not see an overvaluing in house prices, more a realistic value at current prices and a long plateau with prices stagnating for a few years while the economy bumps along.

Without feeding the rabid, conspiracy theorist, trolls like Hamish how far do you feel house prices have to fall ?

I really cannot see them falling alot further from where they are at the moment.

Mr.Brown_4

Spartacus_Mills wrote: »

Without feeding the rabid, conspiracy theorist, trolls like Hamish how far do you feel house prices have to fall ?

25%. Or if you like 30% plus but with some inflation added back in. Over the next three years to December 2012. 10% a year.

Based on the incredible bubble over the previous years which needs to unwind and get back to long term HPI. Plus a bit more for the overshoot on the way down.

That's it, that's my feeling.

Euphoria1z

or it could be the prices stay were they are and not go any where for the next few yrs (i think more likely to happen than 10% falls a yr)

either way, there not going up any time soon.

Kohoutek

Euphoria1z wrote: »

or it could be the prices stay were they are and not go any where for the next few yrs (i think more likely to happen than 10% falls a yr)

either way, there not going up any time soon.

Very likely to be down, purely based on the amount of cash that will be available to lenders in the future. After the credit crunch, the government gave mortgage lenders £300 billion in support...it's due for repayment stage one 2012 stage two 2014.

Unless the government raises even more money for the lenders by increasing the national debt or ordering the BoE to print money, then it will be much harder to get a mortgage, so prices will go down sharply.

kai666

Wookster wrote: »

House prices will suffer a significant correction in 2010 and will probably be no better than flat over the year

so there will be a significant correction, but house prices will stay flat?

sjaypink

IveSeenTheLight wrote: »

The thing to understand is that not everyone buys, therefore currently the top 70% of earners (because 70% of the property is owner occupied) need to be averaged

Graham_Devon wrote: »

LOL, what?

I think what you meant to say Dev, is: 'historically, have the affordability stats been based on UK average, or just homebuyer average, as you are suggesting ISTL?'

Graham_Devon

sjaypink wrote: »

I think what you meant to say Dev, is: 'historically, have the affordability stats been based on UK average, or just homebuyer average, as you are suggesting ISTL?'

Nah, what suffices.

All that guff would wear my keyboard too much

And why Dev