MSE News: Nationwide: House prices continue to fall
Former_MSE_Guy
Former MSE 1.7K Posts
This is the discussion thread for the following MSE News Story:
"The average cost of a home dropped by a further 0.3% during November, following a 0.7% slide in October ..."
"The average cost of a home dropped by a further 0.3% during November, following a 0.7% slide in October ..."
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House prices are still highly overvalued compared to historical norms. Internationally all the other housing bubble are deflating fast it is time the UK followed suit.
I recommend all first time buyers to hold off buying, keep saving those deposits and enjoy the continuing price falls. You will save a fortune and get protected from the dreaded negative equity.
Every month you hold out you save £1000 or so and save a bigger deposit.
Good news for buyers.
Save our Savers
Although you are correct in what you say about the probable saving on the purchase price by delaying, it doesn't factor in any rent that first time buyers might need to pay during the waiting period. So although delaying may well represent an overall saving, it's not as clearcut as it may seem at face value.
However, getting as large a deposit as possible is generally a good idea just from a personal security point of view. It also gives more access to the better deals if the deposit is larger.
Where do you get £1000 per month from?
With a 0.3% fall this month you would have to be looking at property priced at £333,333.00 to save £1000 this month. Are you looking at properties at that level?
Even if you are, that's hardly the figure that most first time buyers can aim at, surely?
There is nothing to debate - the prices have fallen.
Read the sticky on the House Buying, Renting & Selling board.
Then why create a discussion thread if there is nothing to discuss/debate?
If you take the average monthly drop on about £200K property you get roughly £1000.
The
Save our Savers
£200,000 / 100 x 0.3 = £600. (0.3% is the drop this month).
I think the average price of a UK property is around £165k which gives us a drop of £495 this month. As your post was aimed at FTBs I would assume that this sector of buyers would be buying the average price house or less as there only starting out on the ladder.
I'm not opposed to housing drops and if I was an FTB in no rush to buy then I would hand on, but lets not fool ourselves about the amount of money being saved month on month. With rents steeper than mortgages and apparently increasing each month, the monthly saving would be much less, if anything, unless of course the FTB is getting free accomodation.
I'm all for saving a large deposit, but if house prices goes down and rent goes up fast. What happens then?
I like to see some official numbers on rent rises. I haver personally experiences > 20% increase in the last 18 month. So are you better off renting?
On the other hand if you were staying with family... :cool: