House prices have fallen 20% in 5 years

The-Joker

purch wrote: »

Well that was a waste.

Macaque, I want my membership fees refunded :eek:

Should've joined the 70% club.

The-Joker

Generali wrote: »

If you adjust for RPI inflation the fall is well over 30% and rising (IYSWIM).

While there is some way to go before the UK housing market gets a free tie from macaque's august club, membership of the rather less snappily named 70% in real (inflation adjusted) terms remains a possibility.

And that is the RPLie fudged numbers. The real figures show property has crashed well over 30% from the top and picking up speed.

The DMail says "

The drop of almost 20 per cent has left millions of families in homes worth less than they paid for them – and there are strong fears that prices could fall further.

Read more: http://www.dailymail.co.uk/news/article-2184694/House-prices-fallen-20-past-5-years-leaving-millions-homes-worth-paid-them.html#ixzz22rTDKPtR"

Not according to Hamish and the other perma propbull's on here. The way they ramp property while its falling in value all these years makes you wonder if there was an event in the Olympics for being consistantly wrong they would get GOLD!:T

HAMISH_MCTAVISH

The-Joker wrote: »

GOLD!

Well that's fallen more than property since peak.

And Silver has fallen 40% plus the VAT.

Wonder how Bronze is doing.....

robmatic

How is property looking in total return terms over the last few years? It's clear that the capital value is declining in real terms, but it does have a yield as well.

purch

The-Joker wrote: »

Should've joined the 70% club.

NO.

Shouldn't have joined.

That's why I want my membership fees back.

The Joker appears not to have any sense of humour.

StevieJ

HAMISH_MCTAVISH wrote: »

Well that's fallen more than property since peak.

And Silver has fallen 40% plus the VAT.

Wonder how Bronze is doing.....

It's Jonny Brownlee :beer:

Generali

StevieJ wrote: »

Then again if they had bought in 2005 with a 20 year repayment mortgage they would only have 13 years left, then there is the bonus of low interest rates (I took my last one out in 2005, 2 years at BR+0.25% and the rest at BR+0.95%).

It's a very good point but I guess it comes down to what you want to debate:

1. House prices are down hugely in real terms (outside London)
2. Total cost of house ownership when financed with a mortgage is probably falling quickly too

The interesting thing for me is the real (RPI inflation adjusted) change in average house prices. They have been falling for 5 years now and show no sign of turning around.

The-Joker

Generali wrote: »

It's a very good point but I guess it comes down to what you want to debate:

1. House prices are down hugely in real terms (outside London)
2. Total cost of house ownership when financed with a mortgage is probably falling quickly too

The interesting thing for me is the real (RPI inflation adjusted) change in average house prices. They have been falling for 5 years now and show no sign of turning around.

You are sounding more and more like you are in the 70% club.

go on if you had to Generali, gun to your head your best guess where will the bottom be? Do you think 70% real fall or more?

Do you think we are past halway or not yet past?

The-Joker

HAMISH_MCTAVISH wrote: »

Well that's fallen more than property since peak.

And Silver has fallen 40% plus the VAT.

Wonder how Bronze is doing.....

The difference is monetary precious metals are in a long term bull market and property is in a long term bear market.

Idiophreak

Phew, suddenly I'm really glad I didn't buy "the average home"...dodged a bullet there.