MSE News - Nationwide: house prices down for second successive month

MrandMrsWoo

Not having a dig in anyway but I would just like to understand your position on the whole house price crash thing as you seem to be cheering every fall but ignoring everything else.

My view is that if something is affordable for us and it is something we want like a house then we buy it... If we can't afford we don't wish misery on everybody else until it comes in our range. Surely house prices are personal to each and every one of us and of course we would all like to buy at the cheapest possible prices but for house prices to come anywhere near your level of thinking a HELL of a lot else has to happen elsewhere first probably making it near on impossible for you or any other FTB to buy anyway.

I was a regular viewer of housepricecrash and watched how people changed when house prices did start to tumble, all of a sudden the true reality of how prices actually hit them and they started worrying for their jobs, financial security etc just like everybody else. For me it was a website full of bitter, small minded people who had been priced out (rightly or wrongly) and decided speculate on something out of reach but if you read the forum everybody had "£50k just sat there waiting to pounce".

Yes there are a lot of idiots that dived in with 100% mortgages and brain dead BTL that probably deserve to suffer a little for their stupidity but to wish misery and financial peril on the hard work majority just seems narrow minded and sad.

Like I say not having a go but I would love to understand your thought process on all of this. For me a house is a home and the price is what you pay to eventually own your own home.

brit1234 wrote: »

48 months of falls sounds good to me.

I think the vast majority of people will be better off with prices falls from first time buyers to those who find it cheaper to upgrade.

Those who lose out will be the property speculators but they should of incorporated a risk management strategy rather than believing prices only went up.

nzseries1

SimbaK2K wrote: »

Gosh you lot are a bit premature aren't you? 2 months of slight falls and you think your going to get another 46 months of it? Not a chance. I'd be willing to put money on that.

It was merely a reference to the mock headline posted above my post that said "48th consecutive house price fall"

nzseries1

MrandMrsWoo wrote: »

Not having a dig in anyway but I would just like to understand your position on the whole house price crash thing as you seem to be cheering every fall but ignoring everything else.

My view is that if something is affordable for us and it is something we want like a house then we buy it... If we can't afford we don't wish misery on everybody else until it comes in our range. Surely house prices are personal to each and every one of us and of course we would all like to buy at the cheapest possible prices but for house prices to come anywhere near your level of thinking a HELL of a lot else has to happen elsewhere first probably making it near on impossible for you or any other FTB to buy anyway.

I was a regular viewer of housepricecrash and watched how people changed when house prices did start to tumble, all of a sudden the true reality of how prices actually hit them and they started worrying for their jobs, financial security etc just like everybody else. For me it was a website full of bitter, small minded people who had been priced out (rightly or wrongly) and decided speculate on something out of reach but if you read the forum everybody had "£50k just sat there waiting to pounce".

Yes there are a lot of idiots that dived in with 100% mortgages and brain dead BTL that probably deserve to suffer a little for their stupidity but to wish misery and financial peril on the hard work majority just seems narrow minded and sad.

Like I say not having a go but I would love to understand your thought process on all of this. For me a house is a home and the price is what you pay to eventually own your own home.

I don't think this was actually directed at me, but I'm going to answer it anyway.

but to wish misery and financial peril on the hard work majority just seems narrow minded and sad.

I'd like you to point out in exactly which post this was said. I personally don't want to see this. I'm simply happy that house prices are falling so that I can afford to get on the property ladder.

What I don't like are the large number of people who think "bricks and mortar are a guaranteed investment". In my opinion this needs to change.

If we can't afford we don't wish misery on everybody else until it comes in our range.

I thought that the deal was that for those who are genuinely buying a house to live in, and not as an investment, then falling prices is not a problem. And if prices fall in your area, chances are they're falling similar amounts in other areas, so to move house will cost you no more. Don't they say "it's only a problem if you choose to sell".

What I have zero sympathy for is people who have brought property as an investment, and are now seeing the value of that investment go down. The value of your investment can go up as well as down, and you may not get back your initial investment.

Forgive me if I'm naive, I don't follow the house price boards a lot. I'm just using what I consider to be common sense.

brit1234

SimbaK2K wrote: »

Gosh you lot are a bit premature aren't you? 2 months of slight falls and you think your going to get another 46 months of it? Not a chance. I'd be willing to put money on that.

You would loose money for certain. The house price inflation for the last decade was clearly unsustainable caused by mass fraud, specualtion, too low interest rates, and irresponsible lending. Thats gone, prices fall to normal levels. They have a long way to fall yet and there is nothing left to keep them inflated.

MrandMrsWoo

nzseries1 wrote: »

What I have zero sympathy for is people who have brought property as an investment, and are now seeing the value of that investment go down.

Oh I fully support that!!!

I was watching location location location last night and this couple on their couldn't afford the house the really wanted so they moved their ambitions down a little. The house they ended up buying was to make money on as a stepping stone to their dream house... OK that's fine but exactly HOW could they make money on it? Phil was saying "what a sound investment to make money" but both me and the Mrs were screaming at the box "HOW???".

There is plenty of idiocy in the housing market still! But the level of idiocy comes from both sides. There are people who see homes as cash cows and people who the end of the world is coming and house prices will be back to 1997 levels, housepricecrash has been predicting this for 6 years now...

My view - Renting is not "dead money" it is clearly circumstantial to your situation. House Prices have for me fell back to sensible levels vs earnings and economy. We are just coming out of the worst financial crisis EVER and still house prices held up there or there abouts to those who purchased sensibly and treat the house as a home. For house prices to fall to ridiculous levels there is a hell of a lot that needs to happen first and let's be honest house prices will be the last of our concerns when a loaf of bread costs £87 etc etc

Raggie

I live in a home not an investment, and I puchased this home in Q3 2009, amid all the speculation of further falls in pricing.

I am pleased that the nationwide is indicating in the PR that prices are falling, BUT... .

I cant figure out why when I check the effects of these falling prices using their own HPI calculator, they show a change in value from 2009 Q2, to now of +7.8%.. (outer metropolitan)...

does the calculator lag behind their reports...?

should 0.9% be removed from the 7.8% figure to give the current index.

Do we need 6 more months of these negative indices to return to the original price paid in 2009?

am I too ocupied with %'s?


My nan used to say:

"you know the price of everything... and the value of nothing...."

and that was before HPI.......

BLT_2

dunstonh wrote: »

Was there a picture of Diana to go with it?

Yep and a news report that Elvis had been seeking working in a local chip shop.

Why do they bother with these constant figures, they are all total bollox. And this pointless site advertises them just to fill up space. I can only assume Martin recruits his MSE 'Experts' from the local primary school, where they spend their playtime cutting and pasting meaningless news reports into the website.

brit1234

BLT wrote: »

Why do they bother with these constant figures, they are all total bollox.

Because it gives an indication where the market is going. That's useful to us buyers when we look to buy and at how much.

Now prices are going down it is important that these figures are coming out to illustrate this to sellers.

Roll on the Halifax figures

neas

But brit.... are you not bothered by the fact you been waiting for 3 years already? Rewind 1 year and prices had fallen 12-15%.... then over the last year they recovered... to a 7% fall. How long will you be prepared to wait? and ultimately what if you are wrong?

How are you going to call the bottom? Will you put things on hold forever? I personally dont want a family in rented accomodation. being a home owner for 4 weeks I realise things about owning (or co-owning with the bank )... is that its mine, i wont be turfed out, i wont have to move every year my interest is the same as my rent was for 5 years... except I can start making it my own home, can sit in my garden, have a BBQ and work toward producing something thats mine.

Im a pro-crasher.. but a 50% fall isn't going to happen... what level will be good for you? Will interest rates be so low forever? You gotta wait for the crash and the mini-recovery to get anything thats decent.....as the elder generation have smaller mortgages on all the good places and will just sit and wait.

And a good point was made if a 50% fall did occur, the country would go back to !!!! again.... anyone without 50% equity would hand the keys back on mass.... collapsing the bank system as the masses renege on their loans..... causing confidence in the country to slip, causing job losses, causing a depression.

But that prob wont happen, prices will fall again but what will really bring house prices back to being 'affordable' is the hidden inflation factor... slowly but sure it will creep back without a big shock as a 50% fall.

GMS

To me the subject of house prices and speculation on huge drops is ridiculous.

If you like a house and can afford it then buy it. Simple as that.

A house is somewhere to keep the rain off, whether owned, mortgaged or rented.

Buying at the bottom of the market is obviously the best thing to do but the problem is, as with anything, once you know the level you have missed it. The only way to know when the market has truly bottomed is after the event, when you see sustained rises.

TV shows such as the ones mentioned in these posts have a lot to answer for. Houses were seen as a second income and easy money. Not the case.

Over the long term houses have generally been proven to be good 'investments' but the term must be taken in context. An investment is something which you would expect to mature at some point. If your investment is your home you could well seel it and reap the rewards, but where would you live. Another home which has increased in value would need to be bought, or a property rented at much higher rates than a mortgage should have been at the term end.

Until we view houses as what they are, somewhere to live then we will have constant debates over who bought at the right time, who missed out etc.

Who cares? If you like it and you can afford it buy it.