Bad news for homeowners as house prices will not return to pre-recession peak until e

BertieUK

Conrad wrote: »

I can assure you EA's in morning meetings always discuss the days upcomming valuations and how they can arm themselves with info to pursuade a usually house proud owner to put it on at a price to sell.

An agent makes no money unless a place sells, so it's in thier interest not to over value. It's the fastest way to go broke in the business.

Furthermore lets suippose EA's have this miraculous power to direct a market of made up of millions of participants. If they sell a place for £250k they make £4375 @ 1.75%. If they achieve £260k, they make an extra £175. Would you as a businessman risk having a property unsold on your books in order to try and gain a tiny bit extra money?

I hear what you are saying and it makes sound sense, what baffles me is the speed of the increase in property values in such a short time it 'appeared' to me rather unsettling to the average person, like me to understand.

One example that we had was the last property prior to the one we own at present was purchased for £97,000 in March 1996 then we put it onto the market in Sept 2008 with a valuation set at £325,000. by the EA.

Then the market went bump and we finally achieved £260,000 we did however have an offer of £275,000 but they could not sell their property at that time.

We had to move ASAP because a family member needed special care. (a long story)

So you can see my point in the question of how could property leap so fast as our example did.

Thanks for your post I respect it.

NEO72

HAMISH_MCTAVISH wrote: »

:rotfl:

House prices would need to fall by 80% for me to be in negative equity.

Nice try though.

Interesting though how those who ostensibly have least to lose by falling prices are the ones who oppose it so vehemently...

Conrad

BertieUK wrote: »

I hear what you are saying and it makes sound sense, what baffles me is the speed of the increase in property values in such a short time it 'appeared' to me rather unsettling to the average person, like me to understand.

One example that we had was the last property prior to the one we own at present was purchased for £97,000 in March 1996 then we put it onto the market in Sept 2008 with a valuation set at £325,000. by the EA.

Then the market went bump and we finally achieved £260,000 we did however have an offer of £275,000 but they could not sell their property at that time.

We had to move ASAP because a family member needed special care. (a long story)

So you can see my point in the question of how could property leap so fast as our example did.

Thanks for your post I respect it.

Bertie, what you experienced was a function of demand coupled with freely available credit. That cocktail sent prices into orbit.
At the same time do you recal people enmass lost faith in traditional pensions and endowments? This further fuelled an alternate investment; property (experts are often unaware of this factor).

As early as 2004 I was reading about this thing called 'the comming credit crunch' on the houspricecrash forum. Folk on there to be fair called it right, whilst most expert economists never saw it comming (one reason I do not get too hung up on what economics experts say btw).


Now we still have demand, but the lending taps are off, hence more sober markets, but Government I think is about to allow new lenders to enter the market so this may change, however the FSA still stops lenders from lending (again, experts on TV keep missing this point - just as they missed the credit crash). Next time you listen to Stephanie Flanders mentioning low growth, note she never mentions the issue of the FSA throttling lenders which means they cannot lend. As ever, experts are unaware of the full picture.

homelessskilledworker

Rinoa wrote: »

Shouting is clearly a sign of desperation.

Or....


It just come out that way when I copied and pasted

homelessskilledworker

NEO72 wrote: »

Interesting though how those who ostensibly have least to lose by falling prices are the ones who oppose it so vehemently...

And he probably took out a 0.0000001% tracker, purchased his "properties" at 50% under value and is hung like Black Beauty and will come back with wings in the after life.

BertieUK

Conrad wrote: »

Bertie, what you experienced was a function of demand coupled with freely available credit. That cocktail sent prices into orbit.
At the same time do you recal people enmass lost faith in traditional pensions and endowments? This further fuelled an alternate investment; property (experts are often unaware of this factor).

As early as 2004 I was reading about this thing called 'the comming credit crunch' on the houspricecrash forum. Folk on there to be fair called it right, whilst most expert economists never saw it comming (one reason I do not get too hung up on what economics experts say btw).


Now we still have demand, but the lending taps are off, hence more sober markets, but Government I think is about to allow new lenders to enter the market so this may change, however the FSA still stops lenders from lending (again, experts on TV keep missing this point - just as they missed the credit crash). Next time you listen to Stephanie Flanders mentioning low growth, note she never mentions the issue of the FSA throttling lenders which means they cannot lend. As ever, experts are unaware of the full picture.

Thank you for your expert opinion, and examples mentioned at the start certainly ring bells.

It certainly is disturbing to hear on the site you mentioned talking about the pending CC and the economists being unaware of the coming 'of the credit crunch' and aparantly just ignoring comments and then just let letting it happen. Does not give us much confidence in them now does it, or are we being unfair to them?

Could it be fair to say that they, the economists' were unable to find a way of stopping it happening in the first place or did they not have an answer, it is hard for those of us many millions who lost out in the credit crunch.

Its almost like our shores being hit by a tsunami and not being told to move to high ground to avoid it. Or is that dramatising the issue.

We are now having to downsize and sell again due to the loss of two of our family, so lets hope that in the spring of this year we may see the proprty market starting to move forward again. Thank you again.

System

14% HPI over 6 years is hardly bad news.

IveSeenTheLight

the_flying_pig wrote: »

true enough, but of course this is only possible if other areas have taken a bigger than average hit below their 2007 peak. an average is precisely that, an average. it's not a 'worst possible case'.
......
[gobbledegook]
.......

I've never bought property on a national average.
The properties I have bought have had no bearing on London Prices, the south east or Northern Ireland.

This is why I monitor the local market and even then monitor the property type and immediate location even closer.

To be honest, I'm not too concerned on what the average is doing, call it selfishness, but I'm more concerned about "round my way"

IveSeenTheLight

NEO72 wrote: »

Interesting though how those who ostensibly have least to lose by falling prices are the ones who oppose it so vehemently...

Sorry, I don't quite get your point.
In any debate, you put accross arguments, preferably backed by facts for consideration.

Because individuals may be relatively safe from the potential of house prices drops, depending on their time of life / historical choices made, it does not mean they need to have any particular point of view.

Arguably, you could say the opposite that "those who ostensibly need house prices to fall are the ones who argue it so vehemently...."

It doesn't really add any point to the debate.

Rinoa

homelessskilledworker wrote: »

Or....


It just come out that way when I copied and pasted

Ever heard of formatting?