MSE News: House prices down 0.9%

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"Values fell at their fastest annual rate for 16 months during February due to faltering demand ..."

Read the full story:
House prices down 0.9%

daisymay2008

good news for me then, but obviously not everyone, may use this in my negotiations with the agent on the house we viewed last night

Incyder

one day......I don't know when, I don't know where and I don't know why, maybe not in my lifetime, maybe not in my kids lifetime, maybe not in my kids kids lifetime, maybe not in the lifetime of my new baby Galapagos giant tortoise which can live for 170 yrs, but one day, I feel there is the very, very outside chance, that halifax and nationwide will agree with eachother.

F_T_Buyer

Shouldn't this be in the "Debate House Prices & the Economy" forum?

SG27

Woohoo! Great news!!

Money_Saving_Dude

Lower house prices benefit everybody. The only exception is someone who has recently bought with 100% mortgage and will thus be in negative equity. High house prices are bad for the economy. They are bad because proportionately more income is stored in them, effectively being locked out of the economy. This reduces the amount of money that can be spent on economic activity, which has knock on effects (so it doesn't get passed around wage packets).

Lower house prices also mean that the rungs of the housing ladder get closer together. So if you are thinking about trading up then the tighter the rungs are squeezed the easier it is to trade up to a better house or better area.

Lower house prices mean there are more sales, so the sectors that depend on housing also benefit. For example more carpets are sold when houses are cheaper.

While this drop in prices is a good thing, there is still the requirement to increase the number of new houses that are built. And this inevitably means stepping on the toes of those who don't want their views to be built on. So while this is good news you still need to think about that sharp stick in the eye of those who whinge about the 'cherished green belt'. That is a misnomer -- it is full of farmers tractors. They are just a vested interest who should be ignored.

Yes of course they don't want the value of their property to fall. But just as with the high speed rail link protesters, you must look at the world from the wider view, and how it benefits everyone. No other view is acceptable.

root2

Funny how people hate rising petrol prices but love rising house prices!!

brit1234

Good news, however the are going to fall a lot further. :beer:

We all know the housing market was one big overvalued bubble. It was created by too low interest rates, fraud and loose lending. Its not about supply and demand its about greed. All across the world in the last decade these housing bubbles formed, even now in China property prices are going ballistic. They are simply unsustaianble and the bubbles are burts USA-UK-Spain-Australia etc.

House prices are going to have to fall 30% from here to return to pre bubble days.





Roll on the price falls.