Property prices diving by up to a quarter by the end of 2012

carolt

Bumping as Hamish is busy at work.

MiserlyMartin

The Daily Mail are reporting that house prices wil fall to those levels and they are calling it a doomsday scenario!!??

Cheap housing is far better for the country bring it on (and I own a house thanks)

Yoshua

lewisa wrote: »

Thats awesome news. It means my next house will be cheaper, and probably the one after that!

Who cares if my current house devalues by n%, the savings gained on my next upsize will more than outweigh it.

This cycle has been similar every time. It will be about 2 decades until this crazy boom happens to house prices again. Then they will crash again!

Percy1983

brit1234 wrote: »

Hopefully soon this bubble can't be kept up indefinitely. I dream of the day when hard working first time buyers can get a property to start families again

What a stupid idea, why should the younger generations be able to afford housing... it is there fault they where born to late after all!

Oh wait...

musicmaker29

gotta love the mail - 'DOMESDAY SCENARIO - WE ARE ALL GOING TO DIE!'.

There's no point looking at this, your best bet is to look at historical prices of property on your street, how much have they changed in the last few years? Anything else is just a generalistion, taking in factors and areas that dont concern you.

A friend of mine spends a good portion of his life moaning that house prices are too high and he wishes theywould drop...of course he actually can afford a house, it would just need (shock horror!) a bit of renovation work - what he's actually moaning about is the fact that he can't EASILY find a house that is perfect for him and finished.

IveSeenTheLight

new_home_owner wrote: »

keep it up brit, one day it might just happen.........................................................................................................

Doubt it though.
Even the OP's link says its a doomsday scenario

IveSeenTheLight

Yoshua wrote: »

Why is this the doomsday scenario? There is no doubt that earnings are related to house prices?

they sure are, however: -

If there is 20 people wishing to purchase a product where there is only 10 off, then only the top 10 earners are likely to be able to succesfully bid for the product.

If there is 100 people for the same 10 products, the the chances of even higher earners being successful applies

and so on.

The point is that you are comparing an average house price to an average wage, yet it's been shown many times that the supply of property is not matching the increase in population, meaning that increasingly it's higher earners that can buy, squeezing out those who are average.

If you want average wages ratio to match the average house price, then you need to have a level supply and demand scale.

IveSeenTheLight

carolt wrote: »

Bumping for the sake of balance.

Can you keep a straight face when you type that

carolt

Yup.

Any reason why I shouldn't?

Strings

brit1234 wrote: »

Hopefully soon this bubble can't be kept up indefinitely. I dream of the day when hard working first time buyers can get a property to start families again

Unfortunately the world has changed