FSA warn Banks Housing could "dip" 20%

mchu6am4

Dont know the answers to the questions, but as long as the economy is doing well - i.e. people have jobs then houses will keep selling and that means little, if any, drop in prices.

Generali

Fair enough. I can't say I agree but I can see your point.

Thanks. Third degree over.

mchu6am4

Generali wrote: »

Fair enough. I can't say I agree but I can see your point.

Thanks. Third degree over.

I hope you're not praying for the crash! (especially that i've bought now and are FTB)

Generali

mchu6am4 wrote: »

I hope you're not praying for the crash! (especially that i've bought now and are FTB)

Not at all. I do think that there will be a big drop in prices as the money supply rises of recent years feed through into general inflation rather than just inflating asset prices.

Either the BoE/MPC will put up interest rates to counteract it causing assets to deflate hopefully not cause general deflation although this is a real risk or they will fail to act quickly enough causing inflation to rise leading to 'stagflation' (rising unemployment and prices).

I don't think it's going to be The End of Great Britain As We Know It but I do think there'll be some serious economic pain for quite a lot of people. I just can't see another way for the great big economic mess that we're creating to end. I hope I'm wrong.

ukbondraider

Even if prices drop 20%, at these levels arent they still too expensive for you two especially considering that prices have gone up 10% since the start of the year not to mention approx 50000000% since all the whinging and moaning began on these forums?

Even at these levels I see alot of people buying houses that I wouldnt have thought would be able to buy. I vewed a couple of £550K+ newish houses the other day and they were owned by a landscape gardener, someone who appeared to work for royal mail and someone that looked liked a handyman.

Maybe prices still have some way more to go (upwards) before the true equilibrium is met

machofairy

Lets face it, predicting which way the housing market will go is like predicting the result of a coin toss. You can find "experts" telling you prices will rise, stagnate or crash, depending on where you look. THe evidence in the economy also shows that these three outcomes are likely.

So, what do you do if you want to buy or sell property at the moment?
My suggestion is to flip a coin... heads, buy/sell now, tails, buy/sell in 6 months.

Yes, imo, that's how predictable the property market is at the moment.

mystic_trev

ukbondraider wrote: »

I vewed a couple of £550K+ newish houses the other day and they were owned by a landscape gardener, someone who appeared to work for royal mail and someone that looked liked a handyman.

Maybe prices still have some way more to go before the true equilibrium is met

That's probably because they used equity from their previous homes, which they'd bought for a couple of thousand 40 years ago, to trade down to something cheaper!

alared

A lot of the problem with the high house prices is down to the dot com boom and bust bubble.
It`s wrecked people`s faith in pension schemes and people are buying property as a "pension".

I feel it`s the BTL brigade that are keeping prices pretty high and I can understand their reasons for buying more than one property

---

most company pension schemes are now crap if not non existant,insurance companies can`t be trusted either to come up with the goods after you`ve coughed up for 35 years.
Older people that have already paid for their first home are now buying a second one as an investment for the future.
Young people and low earners can`t get on the first rung anymore.
Mrs thatcher sold off all the council houses cheap and so people have to rent privately from the BTL brigade.

All the vultures you can think of,the gov.,estate agents,solicitors,banks,surveyors,insurers are all picking over the housing boom and making greedy amounts of money from it.
It`s all one vicious circle which must end sooner or later.

mystic_trev

alared wrote: »

most company pension schemes are now crap if not non existant,insurance companies can`t be trusted either to come up with the goods after you`ve coughed up for 35 years.

I tend to agree. I moved my Pension into a SIPP six years ago, if anything goes wrong with it I've only myself to blame!

A_Fool_&_His_Borrowed_Mon

mchu6am4 wrote: »

U might see a 'dip' (a few percent and not 20%!) in prices but 'crash' is a thing of the past.

So long as the credit taps remain fully open then yes.

But will the taps remain open.....?