House Prices Crash 5

lypsey

This was on the FRONT page of the Telegraph

http://www.telegraph.co.uk/news/main.jhtml;jsessionid=J0LHMME1CKVNJQFIQMGCFF4AVCBQUIV0?xml=/news/2007/01/02/nhomes02.xml

And this was further in

http://www.telegraph.co.uk/news/main.jhtml;jsessionid=J0LHMME1CKVNJQFIQMGCFF4AVCBQUIV0?xml=/news/2007/01/02/ntues02.xml

I really , really believe that the market is turning

Sentiment makes a market

lynzpower

I really , really believe that the market is turning

god I hadnt gathered that :rotfl:

Doozergirl

I'm SURE this should be number 6? Wasn't the last number 5 good enough?

mystic_trev

I can't see prices droping this year and wouldn't be surprised to see increases of up to 10% Positive sentiment still drives the Housing market as does a lot of irresponsible lending.The markets behaving the same way the dot com boom did and look what happened to that! When (eventually) it all goes wrong, it'll make the last crash look like a walk in the park!

inmypocketnottheirs

Yawn.............

talksalot81

Al_Mac wrote:

Interest is on the up, but so are pay rises. So long as pay can cover the mortgage, there will not be a crash, more likely a stagnate.

Cough... we are not all city bankers!

Everyone who has half an idea of the state of the system realises that wage increases are definitely NOT happening at the same rate as house price rises. The cold hard fact is that the longer we continue on our current path then the less we have after the mortgage is paid.

Stagnation sounds tough without other changes because it implies a longer term where the UK population have to accept a lower level of living. People currently are buying in and bargaining on big increases. They are paying high percentages of take home pay on the basis that it gets them up the ladder and makes them money. Furthermore there are plenty enough people working on MEW to cover debts. If stagnation occurs, MEW must almost die. So now we all have to live without MEW supplement to pay off a massive mortgage which is not really in the place we want and not earning us any money.

There are plenty enough variables which could say that stagnation may occur, but it would be unsustainable thus would be little more than a stop on the way to a crash.

UK007BullDog

Who is buying property? Mostly BTL it seems going from what I did or self certs and lots of foreigners in London buying.

Well, even if all the banks offer 100% + mortgages the end must be near now. It cannot keep going up like that. The higher up it goes the harder the crash? Everywhere one turns prices have gone up. Just wait when we get the new council tax bills.

I just went to purchase my travel card and the price went up from £115 ish to £126. How do people manage? I think we will see a lot of reposessions this year.

lynzpower

Who is buying property? Mostly BTL it seems going from what I did or self certs and lots of foreigners in London buying

I had an awful lot of interest in my SO place from first time buyers.