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

contribute_good_news

When an eastern european hears about prices for either rent or even more of buying real estate property he or she cannot imagine how someone living and working in UK can afford to buy a house or appartment from their own money in not so long time period?Or if she or he rents an appartment,how much he or she can save beside just living?Real estate properties should be cheaper and have reasonable price,as not everybody is a milionare or has high income,but everybody do need a place to reside and live a decent life!

MrandMrsWoo

Some excellent points there!

My view of it is that for house prices to fall some 20% we had to go through the worst financial crisis in history so what will make prices fall 50%? Seems to be the question that most can't answer.

Like I say there are a lot of people who deserve to be stung by speculating on house prices but prices just can't fall by 50% without severe reproductions. It's all well and good the average housepricecrash person having "£50k waiting to pounce" but when your "savings" are in bank that folds and nobody will provide a mortgage and unemployment jumps to the 10's of millions what will you do? For a 50% fall you need something 2.5 times worse than the last recession... seriously think about it.

My thought - Prices will continue to make small gains and losses over the coming months (don't get excited for either) and will probably go nowhere for 2-3 years and when they do start to increase it will only be in line with inflation and affordability