House prices have fallen 20% in 5 years

The-Joker

The average home in Britain is worth nearly £40,000 less than it was five years ago.

Prices peaked at £200,000 in August 2007, but the same home is now worth only £161,000, according to figures published yesterday by the Halifax bank.

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#ixzz22rcsBPll


The price has dropped around 20%, but only the uneducated do not understand the difference between price and value. The value has fallen around 30% if you go by the official RPI and most experts agree real inflation is more than the RPI.


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The worst-hit are stuck in negative equity, with their mortgage larger than the value of their property.


Read more: http://www.dailymail.co.uk/news/article-2184694/House-prices-fallen-20-past-5-years-leaving-millions-homes-worth-paid-them.html#ixzz22rcPB0iQ

As I have always said these poor souls stuck in neg equity simply can not lower asking prices so the market stagnates. The bottom will not be reached until all the repossessions have been cleared out.

Jack_Johnson_the_acorn

To the Joker -The average home in Britain is worth nearly £40,000 less than it was five years ago.

You have posted this about 3 times and even a whole new thread.... You do realise by posting this several times doesn't make it come true.

The-Joker

It is true are you trying to say its not true?

HAMISH_MCTAVISH

The-Joker wrote: »

It is true are you trying to say its not true?

Of course it's not true.

HAMISH_MCTAVISH

Jack_Johnson_the_acorn wrote: »

You have posted this about 3 times and even a whole new thread.... You do realise by posting this several times doesn't make it come true.

Just report it as spam.

purch

The Joker appears to have low self esteem.

Multiple posting of the same drivel in large text is a pathetic cry for attention.

Mr._Pricklepants

I bought my house for 74 bushels of wheat back in '98.
On last valuation it was worth 237 ounces of silver.
For convenience, I tend to convert to Guatemalan Quetzals, which means my house is worth 1.36% of the original value.
I'm well peeved off. :mad:

Generali

The-Joker wrote: »

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?

I would hope that nobody would be mad enough to hold a gun to my head and then ask me to predict average house prices!

The simple answer is I don't know what will happen to house prices: if I did I wouldn't be debating it!

The monetary system in Europe and the US is in a horrible mess as happens every 50-100 years whether a fiat or specie monetary system is in place.

My belief is that we should accept that the system is bust and forgive debts. As debts are also assets that would mean that savings would be wiped out but that's tough !!!!: if you want to be an usurer then you run the risk of losing your money if the borrower can't or won't repay you.

I work for a bank so I lose my career if this happens but it is genuinely what I think is right and best for the economy. Don't forget that the world can produce exactly the same amount as it could in 2007; the problem is monetary.

Treadstone2.0

Generali wrote: »

I would hope that nobody would be mad enough to hold a gun to my head and then ask me to predict average house prices!

The simple answer is I don't know what will happen to house prices: if I did I wouldn't be debating it!

The monetary system in Europe and the US is in a horrible mess as happens every 50-100 years whether a fiat or specie monetary system is in place.

My belief is that we should accept that the system is bust and forgive debts. As debts are also assets that would mean that savings would be wiped out but that's tough !!!!: if you want to be an usurer then you run the risk of losing your money if the borrower can't or won't repay you.

I work for a bank so I lose my career if this happens but it is genuinely what I think is right and best for the economy. Don't forget that the world can produce exactly the same amount as it could in 2007; the problem is monetary.

Wow that's deep man.

Just to be clear that is what you think should happen right, all debts be reset? Not what you think will happen?

Most debts may get wiped out if or when a new monetary system comes in, but usually the banks always win at the end of the day. The (the banks) could get all their debts written off but anyone who owes them money (mortgage holders) get their mortgages revalued to the new monetary system.

Unfair yes, but history is unfair.

Treadstone2.0

Generali wrote: »

The monetary system in Europe and the US is in a horrible mess as happens every 50-100 years whether a fiat or specie monetary system is in place.

Yes the Eurozone is in a horrible mess, but that means even more chance they will do what they promised the other day, "whatever it takes to save the Euro" this means adding billions more Euros to their bank accounts out of thin air. It is obvious this has not worked everytime they have done it recently it just makes things worse in the future, but it kicks the can down the road and this could be very bad for UK property especially London.

Because if the Eurozone really do what they say i.e "whatever it takes to save the Euro" it could have disastrous consequences for the UK property market. I think they will do whatever it takes which means creating billions more units of Euros out of thin air and adding them to the worlds supply.

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The biggest threat to UK house prices: a eurozone recovery.

http://www.moneyweek.com/investments/property/uk/eurozone-recovery-the-biggest-threat-to-uk-house-prices-23200

One key factor has been the flood of money from Europe seeking a safe place to invest. This money is running scared. All this money cares about is getting out of its host country broadly intact. It is almost entirely price-insensitive.

So this is not value-seeking money. This money is happy to overpay for an asset, as long as it offers a relatively high level of capital protection. This is the sort of money that is driving up the price of gilts to the point where they yield less than nothing after you take account of inflation.

This money does not give a damn about the state of the UK economy. It's just happy to know that British society will still be there in roughly the same overall shape in ten years' time.

This sounds mad during normal times, but it makes perfect sense now. If I lived in Greece, I would be willing to take a pretty hefty 'haircut' to transfer my wealth into sterling assets.

Why? Because if my Greek euros turn into drachma, then for all I know, I could be looking at a loss of 50% or more. And if the government stops me from taking my money out of the country, it'll be vulnerable to punitive taxation.

This isn't theoretical. Theodoros Pantalakis, former chief executive of the Agricultural Bank in Greece, bought a London property in 2011. He used €8m to do it. There's nothing illegal about what he did, but you do have to question the ethics of yanking your savings out of the country, while your fellow Greeks are sticking their savings into your bank.

The point about this flood of money is that it's a temporary factor. Yes London is a wonderful city for the super-rich, I'm sure. And the Olympics is presenting it in a very favourable light. But if Europe wasn't in quite such a mess, there simply wouldn't be the same level of 'safe haven' flows into the region.

So chances are, once the European Central Bank (ECB) starts printing money, then at least some of the safe haven flow will reverse. At the very least, the amount of money fleeing the eurozone will slow down.

That could be great news for lots of assets, particularly cheap stocks in Europe. But it'll also be bad news for the assets that have benefited from all that 'scared' money. Suddenly a prime property in London will look expensive, rather than a low-risk way to shift a lot of cash quickly.

So ironically, the biggest threat to the UK housing market could be any sign of a recovery in Europe.