Are House Prices Going to Crash?

manhattan

Yes, within the next year

mr.broderick wrote:

Thanks manhattan, you replied just as i knew you would.
That is why i posted it.
Most of the posters on here would love to see a crash and dont give a monkey about people who bought in the recent boom, i didnt by the way. Its ok for you guys to keep phrophecising a crash in the hope it will happen but when anyone says anything to the contrary you get upset. I wont "Loose lol" lose anything, Im happy where i am and would never buy for investment, only for a home, married, 2 children, another on the way, so if there is a correction which wouldnt affect me anyway, i wouldnt be arsed.....:p

WOW! I made a spelling mistake ,good spot,considering I am typing on a pda screen,lol.
like yourself I am married and have 2 children that I want to buy a suitable FTB home for.
I have around a 30% deposit saved,but even with that large deposit it would be a stretch.
and whilst I carefully watch the housing market,the interest on our savings help towards the massive rent of £270-£120=£150 a month lol.oh I'm such a wound up loser!

prudryden

Sorry- have to abstain from the vote. What do you mean by CRASH? 10%, 30%, 50%. Some might say it is just a healthy correction. I suppose it would be defined differently by how it affects a particular person's economic way of life.

catkins

Yes, within the next year

I must admit I thought house prices would crash long before this but now with a rise in interest rates and another one expected in the new year I really do think it will happen. Bankruptcies are at an all time high, repossessions are more than double last year, people are struggling with mortgage payments, high electric and gas bills. Of course the government, estate agents and financial institutions all want us to think things are fine, houses will continue rising in value but is it likely?

ascollen

A friend of mine is in rented accomodation but has considered buying a property to let (can't afford to buy the type of property that he needs, so looking at 2 bed terrace as investment), any opinions on that score?

On a fixed rate mortgage seems like a good option to me, even if there is a crash....

talksalot81

skim wrote:

no sign of a crash in my area - I have a friend who is a local EA (Derbyshire) & they are saying business is twice what it was a year ago.

I just sold my house - been on the market 10 days & many in my area are selling within the same sort of time so to me that suggests the market in my area is undervalued at the moment.

The other thing is whilst more people are coming into the country, there is still a shortage of houses & financial institutions keep playing with how many times your salary you can borrow & length of term being extended then prices will continue to rise until that stops.

I think you may be waiting a few more years yet.

Property hear is even worse than you are noting. Not only do houses sell almost instantly, they are selling for as much as 60k over asking (taking 150k to well over 200k). However, it is not because the housing is undervalued. If you look at rental prices, the rental value on many of these places is coming towards a third of the mortgage costs... that sounds like the mortgage is way too high for the house.

Paulxo

No, they will continue to rise

It's a lifestyle choice.

Rent with no worries (except the 'dead money').
Worry with no rent (except the interest).

If you have your own house, and only 1, it is better to rent. Property prices are all relative so it makes no difference.

If you find your dream house, buy.

If you want to be an investor, buy, buy, buy. Don't think as your own house as an investment. It is clearly a liability. It costs money each month. It goes up in value, but relatively compared to others, quite negligibly.

However, added benefit is being able to remortgage and buy stuff you don't need... Danger is you then can't afford those repayments...and u end up renting.

abaxas

Yes, within the next year

Can everyone please stop posting useless 'around here they are selling like hotcakes' type posts.

The UK is a large place with many different housing markets, eg London is booming, Nottingham is on full scale crash mode.

Can we just discuss the matter in hand!

Personally I beleive there will be a crash, but not everywhere and with every property. Good stock will always have value however the over inflated chuff at the bottom eg new build flats etc will be hit hard. Also I beleive most northern areas could be 'raped'. No-one earns enough money to buy there, the market is (and has been) pure speculation for the last 4 years.

skim

Yes, but not yet

abaxas wrote:

Can everyone please stop posting useless 'around here they are selling like hotcakes' type posts.

The UK is a large place with many different housing markets, eg London is booming, Nottingham is on full scale crash mode.

I think that is the whole point - you can not generalise.

One market may stagnate or crash whereas another might be doing well.
Nottingham may well be in full crash mode but 15 miles down the road where I live it is doing well.

ascollen

abaxas wrote:

Good stock will always have value however the over inflated chuff at the bottom eg new build flats etc will be hit hard. Also I beleive most northern areas could be 'raped'. No-one earns enough money to buy there, the market is (and has been) pure speculation for the last 4 years.

Agree with abaxas about new build flats.... hundreds going up in manchester. doesn't seem to make sense at any level for me... £120k for a 1 bed flat in manchester? Definitely over-priced and hyped up...

Abaxas - pls elaborate on "market pure speculation" ???

jyonda

No, they will stabilise and wages will catch up

_Paulxo wrote:

If you find your dream house, buy.

_Gorgeous_George wrote:

My best advice would be - buy a house that you want to spend many years living in.

This is dynamite stuff. I think we can now put the whole 'House Price Crash' discussion behind us and move on with our lives, finally.