Take cover! The housing market is heading for a bloody and protracted crash!

Jimmy_31

NextLegUpIsTheBigOne wrote: »

Of course it's not your headline and of course you thought you'd post it. Because its suits your sickening hidden agenda of wishing to see hard working home owning families thrown onto the streets unemployed and renting.

Just take the loss and move on lad.

Its only money.

StevieJ

Is this the guy that wrote Planet Ponzi? nuff said

ferry

Didn't house prices just go up generally?

Or was that just another speculative news story?

Neverland

ferry wrote: »

Didn't house prices just go up generally?

Or was that just another speculative news story?

House prices go up with wages over the long term

Not so surprising really

Only wages aren't going up as fast as inflation right now

In the short term they also track the supply of money available to be lent out to buy them and the cost of servicing a mortgage

The former has dropping been dropping like a stone since 2007

The latter is more interesting:
- 0.5% base rates initially caused the costs of servicing mortgages to fall in 2009 and 2010
- however, the switch towards repayment loans from interest only mortgages and the increase in the margin banks charge for scarce loans means the cost of mortgages must be going up

StevieJ

The ratio of average house prices to average earnings went from around 3.5 to more like seven times average earnings – implying that prices at their peak were overvalued by almost 100%.

Not sure where he gets his info from, here is a chart off the super bull website Housepricecrash More shock and awe from another guy who supposedly predicted the credit crunch although can't find any mention of this on a google search. Good publicity for his book though. BTW thanks MF

http://www.housepricecrash.co.uk/graphs-ftb-average-house-price-to-earnings-ratio.php

Thrugelmir

ferry wrote: »

Didn't house prices just go up generally?

Don't believe so. A few properties were sold. However transaction levels are so low that the numbers are bound to bounce around month to month.

crash123

NextLegUpIsTheBigOne wrote: »

You say that to the starving children of distressed unemployed families. You and your ill having nothing short of a sickening agenda of hate and greed. All fuelled by your downright jealousy of others more successful in life than you. The sooner your ma cooks and serves you up a very large slice of hot humble pie the better.

Jimmy is only doing what I did in the last recession. Stay at home and save as much money as you can. House that I wanted was £65,000 got it a few years later for £52,000. Not a bad saving for staying at home with mummy.

MrMadhatter

I hope they drop, houses are just out of reach for far to many people!.

Blacklight

mpmbm wrote: »

timberrrrrrrrrrrrrrrrrrrr*

*In real terms, over 4 years.

ukcarper

MrMadhatter wrote: »

I hope they drop, houses are just out of reach for far to many people!.

The median full time male earnings are £28.4k the average terrace house is £124k so with the required 20% deposit a 3.5x mortgage or 4x with 10% deposit.

Take home pay £1800 a month mortgage repayments of £580/£650 25 years at 5%.