House Price Crash

Gorgeous_George

I'm sure Martin would agree that at no point did he say a house price crash was imminent. He said he didn't know and that anybody who claimed that they knew was a liar.

Nobody knows.

Demand for housing continues to increase for numerous reasons. A couple of percent on the mortgage rate would see thousands struggle and some repossessions but there are millions who would cope. There would of course be more severe problems for the economy as people would stop buying new cars, 43-inch trendy tellies and Jimmy Two Shoes (?).

Those people rubbing their hands in glee at any crash may find themselves unemployed and unable to secure a mortgage.



GG

dips_3

MORPH3US wrote:

Thats ok then, as long as you are sorry but get the house that you want on the cheap, who cares about the millions that face financial ruin, heartache, broken relationships and poverty!!

It doesn't take much to start the "house price crash brigade" again does it. Martin is on tv saying "prices MAY go down" and all of a sudden chinese whispers syndrome kicks in and "Martin says there WILL be a HOUSE PRICE CRASH!!!" run for the hills!!!

What Martin actually said (as Andrew Smith and others have pointed out) was that he believes there will be a period of stability and then went on to say that he cant actually say what will happen and that anyone that tells you that they do know what is going to happen is lying!!!

M

Did he actually say he believes there will be a period of stability or did he say he hopes their will be a period of stability - I agree he did say that nobody knows what can happen.

We all hope their will be stability but what we want and what we get are not always the same thing.

High house prices have had a devastating effect on many people - not just those locked out of the market but also those who are now in huge amounts of debt because of high mortgage payments and living off credit cards and loans to fund this.

Nobdy wants a house price crash for the sake of it - or to pick up a cheap 'bargain' but when house prices rise as fast as they have done in recent years in order for them to return to affordable levels then house prices will need to fall. There is little evidence that wage inflation will come to the rescue of over indebted home owners this time.

It may happen - it may not but one things for sure - if house prices do fall it will not be because of a web site/tv programme etc. It will be because the fundamentals can no longer support house prices.

dougk_2

Get_Real wrote:

Seeing the title does not mean that you have to browse the thread

How about making yourself busy elsewhere dougk ?

Beacuse the same old drivel comes up time and time again, so i look thinking there is some new exciting news and facts and its the same old thing with nothing new and no new evidence to prove that a crash is on its way - somehow it always appears this time of year too when the market starts to slow for the winter - strange that!

Just because i don't agree, doesn't mean i shouldn't post and I will post elsewhere as well - after all i can do as i like on a day off work!

Sput2001

steve_cov wrote:

Yes, but the Daily Hate Mail also thinks that anyone who is (black/Jewish/Asian/gay/single mum/not the editor of the Mail: insert preferred minority here) is a Bad Thing.

You might as well ask next door's cat what's happening in the real world.

They also have this seemingly bizarre strategy of wanting to depress or scare the bejeezus out of its readers on a daily basis. Own a house? you're screwed! Got a mortgage? Brace yourself for imminent bankruptcy! Got a pension? Not any more you haven't! Looking for a job, benefits or NHS treatment? Dream on sunshine, the hoardes of illegal immigrants have stolen the lot!

You couldn't make it up!! Well, actually they could. And a lot of times they do.

We first bought in 1996 and within months the Mail and Express were forecasting house-price doom. Astoundingly enough it hasn't arrived yet.

They seem to work on the premise that if they keep on predicting it then should it ever happen they'll be able to bang on about how bloody clever they are.

I'm not saying a crash won't happen, but there are far more relaible sources than the tabloids.

Sorry - rant over!

MORPH3US

Gorgeous_George wrote:

Jimmy Two Shoes (?).

LMFAO, even I know that they are Jimmy Choo's - must be all the time I have told the gf she isn't allowed any until there is a shoe price crash :rotfl:

MORPH3US

dips wrote:

Did he actually say he believes there will be a period of stability or did he say he hopes their will be a period of stability

I *thought* he said that he "believes" but I could be wrong!!

M

AndrewSmith

Agreed,

Also the actual BBC news article was with respect to the fact that 750,000 people in the UK have missed at least 1 mortgage payment in the last 12 months.

This does not spell a property crash, but what it does indicate is that people are prepared to greatly overstretch themselves to get that house!!

It has been predicted since last CHristmas that there would be 2 interest rate rises this year, one mid year the second between the 3rd and 4 th quarters. However people have still ignored the advice of most advisers who have been telling them to reign in the borrowing a bit and keep things realistic. Then on the other hand you have the small minority of advisers still pushing buyers for 5,6,7 x their income.

Absolutely and ridiculously irresponsible.

It does not, however, necessarily mean that there is an imminent property crash. Martin was merely trying to make people aware of what 'may' happen and to keep it in mind when mortgaging or re-mortgaging.

Andy

RHemmings

mystic_trev wrote:

It'll happen sooner of later (the crash that is) and probably sooner. Let's face facts, If as yesterdays Mail tells us, houseprices have doubled in the last four years, a 40% correction isn't really very much?

A 40% correction would wipe out most of the gains of property doubling in price. A 50% correction would halve house prices, wiping out a previous doubling of prices.

RHemmings

AndrewSmith wrote:

This does not spell a property crash, but what it does indicate is that people are prepared to greatly overstretch themselves to get that house!!

It has been predicted since last CHristmas that there would be 2 interest rate rises this year, one mid year the second between the 3rd and 4 th quarters. However people have still ignored the advice of most advisers who have been telling them to reign in the borrowing a bit and keep things realistic. Then on the other hand you have the small minority of advisers still pushing buyers for 5,6,7 x their income.

Absolutely and ridiculously irresponsible.

It does not, however, necessarily mean that there is an imminent property crash. Martin was merely trying to make people aware of what 'may' happen and to keep it in mind when mortgaging or re-mortgaging.

Andy

But see the other thread on "bargains at auctions". Those repossessed properties are selling at prices much lower than previous sale prices. In the case I followed up, low enough so that the drop is the size of a massive crash in prices. If more properties start getting repossessed, that's going to put some serious downward pressure on prices.

MORPH3US

A bit earlier on that programme, there was a couple who were advised by a mortgage advisor to buy their council house for £30,000.

The story goes on that they couldn't afford to keep up the repayments and blamed the advisor for it. When they interview the woman though, it turns out that they real reason is that her husband lost his job and she fell pregnant. How the hell is that the mortgage advisors fault, it could happen to anyone at any time!!!

People just don't take responsibility any more, just like this bank charge reclaiming (don't want to open that debate) but whats the point of being careful with money if you can just blame someone else and get it all back anyway!

M