Slow..steady decline in house prices

ivegotabig1

house prices are just sooo over inflated, that no matter what spin the Halifax or Abbey (i dont believe anything they say now!) put on things they simpley have to come down !! PERIOD !!!!!!! befor the last "crash" i recall prudential spending a fortune on buying estate agents as prices then went sky high,only to have their fingers badly burned,because then the idea was that "property never goes down in price", now ofcourse people remember that & are far more likely to accept the idea of a falling market,although still many would rather not admit it too themselves, talking of which the stock market peaked at just over 7000 points as i recall a few yrs back, two years later it bottomed out at about 3500 !!! how many financial "experts" would have predicted that ?? answer .....NONE. or none that i heard of anyway.. problem is because so many of us own our homes we just dont want to be realistic, we just like to stick our heads in the ground or listen to others that tell us that after such huge gains in recent yrs, prices will remain stagnent, sorry but your avin a laugh !!!!.....ive heard all the arguments both ways many times, but simply cannot escape the conclusion that after the traditional spring boost to the market this yr, the only way is slowly south, but over a few yrs!!!!!

alanobrien

I doubt there would be a massive crash but i agree prices are ridiculous. I suspect a levelling off and stagnation of prices is more likely but we will see.
One thing is certain and that is that the rate of increase is not sustainable.

Why ?

Because, people are now having to stay at home with mum and dad longer into their 30's and beyond to save enough to get on the housing ladder.

The average mortgage is now in excess of 115k

Price rises in typical house bills for council tax and utilities are now regularly outstripping salary increases

Mortgage multiples are being pushed up to dangerous levels

None of this is good news for the housing market.

dougk_2

alanobrien wrote:

I doubt there would be a massive crash but i agree prices are ridiculous. I suspect a levelling off and stagnation of prices is more likely but we will see.
One thing is certain and that is that the rate of increase is not sustainable.

Why ?

Because, people are now having to stay at home with mum and dad longer into their 30's and beyond to save enough to get on the housing ladder.

The average mortgage is now in excess of 115k

Price rises in typical house bills for council tax and utilities are now regularly outstripping salary increases

Mortgage multiples are being pushed up to dangerous levels

None of this is good news for the housing market.

I don't think that is true that more people are having to stay at home till there 30's - I think there is less of this happening. Go back say 30 or 40 years and it was normal to stay at home till you got married... today young people tend to move out and go into rented accom. Also , though sexist few women worked full time 20 years or so ago - today this isn't the case.

Yes the mortages are higher but then so are the salaries. In the 70's my
parents had a £12k mortgage but they only earnt 4k a year. So a joint mortgage today of £117k on a joint salry of say £40k is compariable.

I personally think council tax should be scrapped and income tax increased by say 2% , its not fair as it is and would cut another level of paperwork!