Experts... Price to fall in 2011

nollag2006

Good to see that Capital Economics are still predicting falls. The day they predict rises is when we all need to worry!

Batchy

For the people denying there has even been a crash - What utter nonsense its plain to see in all figures that Feb 09 illustrated a low point.

That does not mean for all houses brought in March, April and May 09 after that the boat was missed, different areas have reacted differently for various reasons, with different perceptions of the state of the economy, the midlands has reacted slowly, but its becoming a reality, and less people are in denial (aside from the ones whose houses have been on the market for over two years).

I am personally buying now, and for the past 6 years havent seen a house worth buying for the value appropriate to me, throughout that time until now. Its plain to see, that if you have been a serious Lurker here over the past few years, saving hard, and waiting, you can take full advantage of the situation NOW or in the future. If your a dreamer expecting 100% LTV's then your not, but your are in a better potential position than those with negative equity! However, for how long that last its up to everyone out their, and the decisions they take.

Its all about timing and doing the right thing and finding the balance and not taking uncalcuated risks. For Example
I Got a lease car last year at a charge of 233 per month, to get the same one now is 360-500 However, it will go back to the lease company! I never brought it, I just took advantage at the time to keep cash flow High! If I brought in Cash I could have brought for 17k, if I buy for CASH now it will be 19k so technically ive missed the boat, but I never, cause I leased instead, ive made my saving and enjoyed my benefit.

Now I will reduce my cash flow right down, buy avoiding buying an overpriced new or nearly new car for a while, until the market is right and suits me. Now is a good time to buy a second hand car, with a lot of power, a guzzler, as they are capped at 220 per annum tax. Its just too costly road tax wise to throw it at a car that guzzles fuel as initially there will be a 1k tax then 500 per annum, plus huge depreciation or high leasing costs.

you earns your money you makes your choice!

oneeye1

i cant see a big crash cos people who own houses and can afford to keep them will not accept an offer which would equate to a crash

pop_gun

I've lived in 4 different properties in 4 years. all in completely different areas. the landlords all share several things in common. all barring one has had their house on the market. none of them could afford the property at the price they brought it and none of them managed to sell their properties.
the excluded home (not for sale) was being offered for rent. there was no takers for the price he was asking.

when i see stuff like this, it's no wonder i'm a bear.

wigglebeena

Ads in Leeds atm, 'Property not selling? 2nd property, no tenants? Let us make-over your presentation and get some interest!'

Wording not exact (from memory), but you get the gist. I presume they're getting takers to make it worth being in business.

Llubrevlis

nollag2006 wrote: »

Good to see that Capital Economics are still predicting falls. The day they predict rises is when we all need to worry!

Or they may be right and that would mark the bottom.

bigheadxx

twirlypinky wrote: »

It's gutting for me really. Two of our neighbours houses were repossessed and sold at about £25k less than they paid for them. We're never going to be able to sell our house.

???

How are you not going to be able to sell if two neighbouring properties have been sold?

What you mean is that you want £25K more for your house than it is actually worth. .

nollag2006

Llubrevlis wrote: »

Or they may be right and that would mark the bottom.

Very unlikely.

Capital Economics have a 100% rock solid record in completely mis-calling the market.

From 2002 onwards (the year that Jonny Davies first STR'd ) CE have been calling for 30 - 50% price drops while the market moved against them.


It was only in mid-2007 that they said no price drops were likely, and the market is going to keep rising

:T:T

A documented history of their farcical record in house price predictions here:
http://www.marketoracle.co.uk/Article7183.html

bigheadxx

Or their information was spot on but a reckless government decided to continue fuelling the boom by keeping interest rates low and pumping up the public sector with borrowed money. We should have had a correction in 2002/2003, in fact we should have had a recession.

Had those things happened we would not have created the "structural" deficit, we would not have had a housing bubble and we would not have had unsustainable levels of personal debt. 2007 was too late for the (not even a crash) falls in house prices because the damage had already been done.

So whilst house prices may not have fallen in 2003, the fact is they should have done to save us from the misery about to unfold.

luvpump

The Rally of the last few months has all the hallmarks of the classic Bulltrap !
The Economy was saved from oblivion by crashing interest rates & money printing, now its payback time ! .
Sadly, huge job cuts & less disposable income for us all over the coming years , Interest rates will also start to normalise next year ... The decade of Austerity has begun..

As Mervyn king allegedly said .."Whichever party wins this election will have to inflict such painful austerity measures on the British population that they will soon find themselves out of power for a generation" .. That is why house price reductions are obvious !