Express - HOUSE PRICES SET TO SOAR

doire_2

LilyDeTilly wrote: »

Forgive me if I am wrong, but you sound like a bitter tenant who cannot afford to buy their own place!

Im of the same view as Emy1501. Yet i could buy a place if i want. However as i live in NI why should i buy when prices are well down since peak here and are still falling.

Does that make me bitter? Nope.

doire_2

Didn't this joke of a paper predict in 2002 that huge falls were coming at that period? When in fact the boom occured.

They should stick to front page stories about princess diana.

FATBALLZ

wymondham wrote: »

My gut feeling is house prices will bomb after the election - no links or proof, just a gut feeling!

Deffo think this is a possibility, just been looking at figures in my local area, it's barely recovered after the crash (2004 prices - on very low sales figures), unemployment is doubled, all this money been thrown into the housing market is barely keeping it afloat. Once the crutches are removed I can't see anything apart from it falling flat on its face.

nembot

HAMISH_MCTAVISH wrote: »

And if they don't?

What will be the next thing "just around the corner" that will make house prices "bomb"?

Reality of the situation we're actually in, which is far more real than your fantasy world.

The media came up with the same old rubbish last time, only the foolish put weight in what they are saying now.

It's all here -> http://www.housepricecrash.co.uk/FAQ-1988-what-the-papers-said.php

I said a few months back prices would be lower in 12 months time and I still stand by that statement today.

pickledpink

nembot wrote: »

Reality of the situation we're actually in, which is far more real than your fantasy world.

The media came up with the same old rubbish last time, only the foolish put weight in what they are saying now.

It's all here -> http://www.housepricecrash.co.uk/FAQ-1988-what-the-papers-said.php

I said a few months back prices would be lower in 12 months time and I still stand by that statement today.

And you'd know would you?:rotfl:

In your DREAMS more like, sunshine!:p

If you're so certain why don't you bet your house on it?! Bet you wouldn't do THAT, eh?:money:

Graham_Devon

I believe the story is correct. I.e. house prices will continue to soar.

However, as the story makes no attempt to try and ignore, it ALL hinges on the lowest interest rates in history.

Rock-bottom interest rates, cheap mortgages and a shortage of supply

Mortgages are only "cheap" because of these rock bottom interest rates. So it's not really 2 reasons there, it's one. They are not cheap realtively. They are bloody expensive relative to historical alignment between base rates and mortgage rates.

It’s imperative that interest rates don’t rise any time soon. That would have a catastrophic effect on the housing market recovery and could see us plunge into a double dip.

Imperative. Pretty strong word. And if interest rates rise, they say it would be catostrphic, and plunge into a double dip. Possibly the biggest admittion I have ever seen from the express that everything hinges on the lowest interest rates in history. They don't even attempt to suggest that anything else is keeping momentum going.

If interest rates stay as low as they are, house prices will continue to rise. This isn't good news, not really. As we are back to square one with 125% mortgages etc. This time however, instead of 100+% mortgages keeping the high prices propelling, it's ultra low interest rates.

Either way, when those mortgages ceased, the market fell. When the interest rates rise, the market will fall.

Maybe something else will be along by that point which enables people to afford a home they otherwise wouldn't be able to afford. Who knows. But it seems likely that "creating ways" to get people buying houses they simply cannot afford is certainly on the cards.

I've been bearish, but have been wrong. I never quite grasped how far things would be taken to try and keep house prices propelling. Everything I was looking at was based on history and, what I thought, common sense....but I'm slowly coming round to understand that common sense simply does not prevail...and "systems" will most likely be put in place to keep house prices as high as possible.

We are pretty much comitted now. Most of the countries wealth is in bricks.

Graham_Devon

wymondham wrote: »

I cant see how they can rise in times of austerity when taxes rise and incomes stuggle (if you have any)....... I always thought house prices reflected the economy - boom in the good years etc????

We're coming into unchartered territory (in recent history) - very few will have witnessed the cuts and taxation about to hit us.....

Nor could I. I couldn't quite see how less money = able to afford more house.

But it really is simple. More shared ownership. Suddenly you can afford 50% of a house. When 50% is too expensive in 5-10 years time, maybe 50% with rent, and a government backed mortgages. When 50%, plus rent, and government backed loan becomes too expensive, no probs, 40%.

The only way the housing market will fall is if the government step back, OR, an outside influence forces us to get real, such as the IMF if we ran out of money. Just look at Greece.

They have all shown their intentions to not step back, but to build more rabbit hutch shared ownership boxes.

Life will get far more expensive, but thats no problem. You will simply fall into another bracket, in which suddenly you have an entitlement to another benefit to keep you able to afford your roof.

It could go one of two ways. But I'm starting to fall on the "propped up through various methods" fence, instead of thinking that once the election is done and dusted, things will start to get realistic.

After that, it's just a case of how long things can continue to be skewed until it all falls down again.

Doctor_Gloom

pickledpink wrote: »

And you'd know would you?:rotfl:

In your DREAMS more like, sunshine!:p

If you're so certain why don't you bet your house on it?! Bet you wouldn't do THAT, eh?:money:

Hi pickledpink/rumbaba/breadlinebetty/thermidor/honeypopper, etc. How are you today?

nollag2006

HAMISH_MCTAVISH wrote: »

...

If this plays out as they expect, it would mean prices rising by almost 30% since the 2009 trough in just the first 4 years after the crash.

grubby23

I am pretty "confident" that house prices are going to fall. There will be huge cuts, lots of people will loose their jobs and cant pay their mortgages; the result will be lots of repossessions. This trend will be intensified considerably by the inevitable rise of interests very, very soon after the election.