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MSE News: Halifax: house prices dive in record plunge

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Comments

  • $$$_12
    $$$_12 Posts: 163 Forumite
    beccad wrote: »
    I'll be interested to see what other organisations, Nationwide etc., have to say about all this. The figures often vary between different organisations. I am SO glad we managed to sell our flat when we did (May)! DH and I are living with his parents at the moment, which isn't easy, but news like this makes me feel better about it all!

    I'm going to reserve judgement about it all until more figures come in from other lenders. We've currently got an offer on a property, not accepted but not rejected (vendor is seeing what they can find to buy based on our offer, which is less than they were hoping for), but I'm not going to pull out of the sale based on this one piece of news...

    Perhaps not - but the next day or so could be an excellent time to do a bit of negotiation with the vendor. Even making a hint that based on this news you are thinking of pulling out may help concentrate the EA & seller's minds a little.
  • tawse57
    tawse57 Posts: 551 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    $$$ wrote: »
    Perhaps not - but the next day or so could be an excellent time to do a bit of negotiation with the vendor. Even making a hint that based on this news you are thinking of pulling out may help concentrate the EA & seller's minds a little.


    Do people who use the term 'DH' do such things? I thought I was on mumsnet for a moment.
    This is not financial nor legal nor property advice. Consult a paid professional if in doubt.
  • $$$_12
    $$$_12 Posts: 163 Forumite
    tawse57 wrote: »
    Do people who use the term 'DH' do such things? I thought I was on mumsnet for a moment.

    I doubt they do - but DH may have other ideas :p
  • Great news, definately not unexpected news to anyone who has done their homework, I,m only suprised that July and Augusts figures showed an increase. Property Bee has been telling the true story all summer. For some reason news reports think it is an unexpected price drop, I think the media have been trying to pull the wool over our eyes. Maybe the editors have invested heavily in property and it is in their interests to be positive about house prices, I'd like to see them try and put a positive spin on this latest bit of news.
  • tawse57
    tawse57 Posts: 551 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    favorita wrote: »
    Great news, definately not unexpected news to anyone who has done their homework, I,m only suprised that July and Augusts figures showed an increase. Property Bee has been telling the true story all summer. For some reason news reports think it is an unexpected price drop, I think the media have been trying to pull the wool over our eyes. Maybe the editors have invested heavily in property and it is in their interests to be positive about house prices, I'd like to see them try and put a positive spin on this latest bit of news.


    Playing devil's advocate - is it possible that July and Augusts' figures were perhaps rigged to be more favourable in the hope of a booming month in September... but they can't stop the bad news any longer and are now showing the true state of the UK housing market finally?

    The IMF says that UK house prices are hugely over-valued and need to fall substantially.
    This is not financial nor legal nor property advice. Consult a paid professional if in doubt.
  • jozbo
    jozbo Posts: 334 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    tawse57 wrote: »
    The IMF says that UK house prices are hugely over-valued and need to fall substantially.
    .. for normal working folk to be able to afford them. agreed.
    but on an island, without building more houses.. how will they ever fall substantially?
    how substantial we talking anyway.. 10%? 20%?
  • I think that there has been rather a lot of rigging of figures regarding house prices by vested interests. People in the UK are just catching on that they are being manipulated by the government and media spin. Any one who was sucked in by the last bounce will stand to lose quite a bit of money, which is a tragedy for first time buyers who have saved hard for that first deposit. Now we can see the true state of affairs, but Halifax is saying that it is too early to say that this is the beginning of a sustained fall in house prices (they would say that though, they make money out of high house prices). House prices have been falling all summer and with the economic situation as it is with some hefty cuts coming along house prices are going to carry on falling.
  • $$$_12
    $$$_12 Posts: 163 Forumite
    jozbo wrote: »
    .. for normal working folk to be able to afford them. agreed.
    but on an island, without building more houses.. how will they ever fall substantially?
    how substantial we talking anyway.. 10%? 20%?

    Fairly straightforwardly I'd imagine. Plenty of finite resources go in cycles of boom and bust.

    For many house buyers the limiting factor seems to be the amount of debt that buyers can access. Few people buy for cash. Banks have previously been willing to lend lots - so prices rose accordingly. Now they aren't - so they fall.

    There are other contributing factors too eg 1m more BTLs than 10 years ago. If they decide to lock in their gains (before too late?) or get out for other reasons then I'd argue it would have a substantial effect on house prices.

    I am already seeing houses in West Yorkshire that were pushing £90-100K several years ago - down to £60-70K. I'd argue few are worth more than £40K-50K.
  • I remember the Nationwide price reports from the nineties,I used to have them posted to me.They were always more positive than Halifax,this still seems to be the case.There are a lot of members on these boards already that are in negative equity and I feel for them.I dont believe anything I read in the newspapers,I subscribe to Moneyweek, that paints a truer picture.
  • In my opinion - I reckon, as the IMF says, prices are hugely overvalued and I reckon there could be as much as another 30-40& to go yet as interest rates are going to increase, more properties will be coming on to the market as people go into negative equity etc and in turn supply will be greater than demand.
    It's gonna be fun, and I'm looking forward to it (and yes, I have a house with a mortgage.)
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