House price crash news

nollag2006

Well said pinkshoes !

There is NO evidence whatsoever of an impending house price crash. None. Not a shred.

With interest rates now approaching the top of their cycle, a growing population increasing the demand for housing, and the economy doing well, there is no need to believe that a crash is looming.

As for interest rates of 8-10%, or even 15% as one poster above has suggested, well that’s just farcical.

I think there’s an element, in all these discussions, of envy from people who could have got in 5 years ago, but didn’t, as they were waiting for the oft predicted crash.

You’ll have a while yet to wait guys…

thesaint

mystic_trev wrote: »

<snip>
As for BTL ,what idiots going to invest in a "negative geared" product? Well at the moments loads, and they're going to get badly burnt.I have two investment Properties bought 11 years ago, and an interest in two others. Only a fool would invest a todays prices. Many will lose their homes and end up going from Landlord to DSS Tenant in one easy move.

sounds like a good soundbite, but the D.S.S disappeared years ago, and it's replacement the D.W.P does not have tenants.

Romani_Ite_Domum

Pink Shoes,

you make some interesting comments but I am not really sure of your sentiment towards a house price correction.

As a recent buyer do you think that paying an overinflated price for your house is a good thing?

Do you think a price correction would be a good thing or would you prefer house prices keep on rising?

How do your friends who cannot afford to buy ( but would "LOVE to")feel about the current market?

PJD

pinkshoes wrote: »

Only a fool would invest in today's market?!? well, i guess that makes me a fool, but at least i now have my own home, and no longer paying rent (which was not much less than my repayment mortgage) to someone else, and I have no plans to sell my home in the near future...

"Investing" in the current market, and buying yourself a home are different things though aren't they?

Pobby

nollag2006 wrote: »

Well said pinkshoes !

There is NO evidence whatsoever of an impending house price crash. None. Not a shred.

With interest rates now approaching the top of their cycle, a growing population increasing the demand for housing, and the economy doing well, there is no need to believe that a crash is looming.

As for interest rates of 8-10%, or even 15% as one poster above has suggested, well that’s just farcical.

I think there’s an element, in all these discussions, of envy from people who could have got in 5 years ago, but didn’t, as they were waiting for the oft predicted crash.

You’ll have a while yet to wait guys…

Hang on!!!!All markets over a period of time go into bubble mode.The industry that I am involved in has reached a bubble.Too many suppliers selling to too many outlets chasing too few customers.The next few years will be rocky as all this corrects.

So to me house prices right now are in hyper bubble mode.Look at the new and imho dangerous schemes being launched by the lenders.9 times income multiples,come on!This is fueling a market that should have peeked around 2004.

There are some interesting points here
http://www.ablemesh.co.uk/thoughtsboombust.html

The 3rd graph clearly demonstrates what happens after a boom.Now look how high the peak is compared to the 90s.

For my money prop erty is not the best place to have your money in right now.

Dithering_Dad

I think for a crash to occur, it takes more than just interest rate rises and house price inflation. If the economy takes a dive and people lose their jobs, that's when you'll see a crash. You'll find that no matter how much interest rates go and how desperate for money people get, they will always make their mortgage repayment their first priority and will find the cash from somewhere, even if this means defaulting on credit cards or loans.

I think that we'll see periods of stagnation (where individuals may reduce their property prices to gain quick sales if they're desperate to move, but the rest will simply be prepared to wait however long to sell their houses) punctuated by short periods of gains caused by interest rate dips or localised conditions such as a new tube/tram stop opening is a particular area.

Romani_Ite_Domum

nollag2006 wrote: »

Well said pinkshoes !

I think there’s an element, in all these discussions, of envy from people who could have got in 5 years ago, but didn’t, as they were waiting for the oft predicted crash.

Envy of what? I have a house.
Treating houses as an investment is ruining this country. Where I live people have been pilling in buying second homes by MEWing and BTL mortgages. Communities are being destroyed.

Envy indeed... get off yer cloud.

Dead_Eye_Jones

Zzzzzzzzzz no one knows, lets just wait and see ay? !

PJD

epz wrote: »

kind of like rates going up from 3.5% to 5.5% in 3 and a bit years with further rises predicted and plenty of people on fixed rates comming to the end of their fix period.

Back in the 80s, we saw a 10% rise in IR rates over 16 months.

sundancer101

One thing that seems to have been overlooked in this thread is the reason interest rates went to 15% in the past - it was the then governments attempts to keep us in the Exchange rate mechanism. Interest rates were the blunt instrument that the government tried to used to keep the UK within the rules of the ERM so hopefully that will never happen again in the future (of course when we get the Euro.........)!
The introduction of the HIPS is not going to exactly help the housing market - at least not in the short term, as it will surely put some people off putting their houses onto the market, therby reducing the supply of homes.
The present prices of houses are unrealistic but that's a market economy for you