Don't tell me house prices aren't going up, look at this

ivegotabig1

For quite a few months now speculation has been rife about whic direction property prices will be going,it seems clear to me now that the peak has been reached & although the bubble isnt going to burst,perhaps more like deflate slowly, it is accurate to say they are coming down in price, today the land registry office rpeorted a .5% fall last month. not suprisingly the banks,building societies & property companies are trying to be bullish,but only because they have a vested interest in keeping property prices high!!! but a quote from todays BBC business page with the headline "Uk house price jitters continue" made a wise observation,it said "The future of the UK housing market is split between the optimists - largely banks, building societies and estate agents - and a number of more pessimistic independent forecasters." one of the more pessimistic forecasters,the highly respected Capital economics has predicted a 7% fall over the year !! i tend to believe them,property prices are in simple terms not sutainable in the long term...PERIOD....to say anything else is to stick your head in the sand,i recently sold my second property for precisely that reason,the only question is where does the fall in prices stop??

Pal

"Use of full stops is heading south"



I agree, but it depends on where you live. London prices apparently fell by about 0.6% last month, while Scotland went up by a similar amount. There is definitely a correction taking place thought.

frugal_dougal_3

It does depend on which area you are looking at. How on earth can 0.6% be calculable anyway ?

It could be that there were 0.6% worth of cruddy properties being sold that month, and from personal observation it was the grotty ones that rose too much in price anyway in the first half of 2004.

dougk_2

here we go again..... its been discussed several times.

I don't believe it - prices are going up in some areas. The land registry is a couple of months out so you are looking at 0.5% drop in the winter when few people buy homes. The building society reports contridict this for last month (with exception of Natwide , whos figures are seasnally adjusted and prices paid actually INCREASED by £1000 on average).

Yes we shall not see large rises this year but still think 2 to 5% will happen.

A 7% drop in a year is very unlikely....lets wait and see who is right!

frugal_dougal_3

dougk wrote:

The land registry is a couple of months out so you are looking at 0.5% drop in the winter when few people buy homes.

In the last two weeks I have counted twelve "Sold" boards go up locally following the winter lull.

I suppose someone will say it is because the owners are panicking and getting out of the market, but equally all of those purchasers have had the faith in the market to buy.

dougk_2

And I dare say the majority of the sellers have bough another house!

In a road where there are only 25 house the three up for sale (including ours) have all had the for sale signs sold to sold in the past 6 weeks.

Similarly on the way to work most of the boards that said for sale last month now say sold (guess upwards of 30 houses).

Ours sold for the asking price as did the one other in the road - The other for only 2k less. We haven't dropped the asking price since before xmas so are prices falling here? I don't think so, apart from the ones that were overpriced months ago and the houses that are in a poor state. Maybe its just that people are only buying smaller houses at the moment so the averages are distorted?????

Woby_Tide

ivegotabig1 wrote:

*snip* today the land registry office rpeorted a .5% fall last month. not suprisingly the banks,building societies & property companies are trying to be bullish,but only because they have a vested interest in keeping property prices high!!!*snip*
*snip*one of the more pessimistic forecasters,the highly respected Capital economics has predicted a 7% fall over the year !! *snip*

so on the back of a single months data and the opinion of the most pessimistic source you could find you've reached the conclusion that prices are falling?

brilliant stuff, you don't work at Capital Economics do you?

MoneyMonkey

It's oh so depressing...

I can't afford to buy a house

Seriously though, can house prices stay as they are when they are so far ahead of the rest of the economy. You add that to the increase in personal debt, especially student debt, is this not an economical time bomb?

Bring on the crash. Awe, going on... please!!

kazd

http://www.rightmove.co.uk/viewdetails-6346172.rsp/svr/2005;jsessionid=A7DA33A442CC8FFD47B534227AB48A13?pa_n=1&tr_t=buy&chnl=buy

Now if thats not a sharp increase I don't know what is.

So I for one couldn't afford to sell my very large four bed house to buy this three bed mid terrace in sunny Wellingborough. I must be missing something, Jlo or Kylie must be moving in which has made the property prices rise so much in that street.

m00nie

kazd ive merged your thread into this one, this debate keeps coming up over and over, may go back to a stickie at the top where it can be discussed in the one place

kazd

m00nie wrote:

kazd ive merged your thread into this one, this debate keeps coming up over and over, may go back to a stickie at the top where it can be discussed in the one place

Thanks Moonie, however, the joke is now gone from the thread, rightmove obviously saw the mistake, yesterday that house had a sale price of £3,500,000.00. :eek: