property values in the 80s crash?

Kez100

Cornwall:

Our FTB house at its peak was 69,000. We paid 52,000 in 1991. It dropped further - sold in 1994 for 48,000.

Guy_Montag

Hi guys,

Using nationwide data from 73' onwards I produced a pretty graph of regional (& UK) nominal HPI, it seems that further you were from London the less growth you saw & the less fall you saw. So NI hardly any growth, but hardly fell at all. Contrast that with NI for the last two year!

It seems that you can't upload pics here, so I've posted it on GHPC where I can be found from time to time.

It looks like squiggly lines when reduced by 90%, but it's fine when you click on it to enlarge it.

Edited to add: I'm f'king Muppet, having posted there I can use the link to pop it in here:

oh it doesn't seem to work just stick with the link above.

Romani_Ite_Domum

Kez100 wrote: »

Cornwall:

Our FTB house at its peak was 69,000. We paid 52,000 in 1991. It dropped further - sold in 1994 for 48,000.

I too bought in Cornwall in 1990. It was a renovation project so I did increase the value of the property considerbly. I sold in 1994 at a slight loss.

Best thing was I was able to trade up from a 2 bed EOT to a 4 bed detached with relative ease.

kingkano

Dennis99 wrote: »

I think this inflation adjusted graph is interesting, if you bought in 1989 your house didn't regain its value until 2002 on average.
The website it comes from is full of interesting stuff. :cool:



http://www.in2perspective.com/nr/stats/-real-inflation-adjusted-house-prices.jsp;jsessionid=94BF0FAE4731F357B18D0013099356EF

assuming of course that you had the 'average house' and it was located in the fictional place thats called 'average' town....

mystic_trev

Generali wrote: »

I've noticed that terraced houses seem to be the sector that has been flying up in price in the past few months so maybe they'll be unsaleable in if a crash happens too. However, I suspect that these are being bought by what the Americans call 'flippers': buy it, stick in a new bathroom and splash some paint around and flog it onwards.

Ahhhh - the jolly old 'flipper' they'll be going down with HMS BTL come the Crash!

Look what's happened Stateside.

"To supplement their retirement savings of $260,000, they figured they'd buy fixer-upper homes to renovate, then sell at a profit in the state's hot housing market. "We thought we'd make $100,000 without batting an eye," says Carol.

But when the housing bubble burst, so did their dreams of a real-estate funded retirement. The properties have been on the market for nine months without a serious offer, and the carrying costs are killer: The Daimlers pay more than $65,000 a year on their mortgages (including loans for their primary residence and a vacation house in North Carolina), plus tens of thousands more for property taxes, insurance and maintenance"

http://money.cnn.com/2007/05/22/magazines/moneymag/retirement_interrupted.moneymag/index.htm?postversion=2007052216

It was me Pension, wannit !

mr.broderick

mystic_trev wrote: »

Ahhhh - the jolly old 'flipper' they'll be going down with HMS BTL come the Crash!

Look what's happened Stateside.

"To supplement their retirement savings of $260,000, they figured they'd buy fixer-upper homes to renovate, then sell at a profit in the state's hot housing market. "We thought we'd make $100,000 without batting an eye," says Carol.

But when the housing bubble burst, so did their dreams of a real-estate funded retirement. The properties have been on the market for nine months without a serious offer, and the carrying costs are killer: The Daimlers pay more than $65,000 a year on their mortgages (including loans for their primary residence and a vacation house in North Carolina), plus tens of thousands more for property taxes, insurance and maintenance"

http://money.cnn.com/2007/05/22/magazines/moneymag/retirement_interrupted.moneymag/index.htm?postversion=2007052216

It was me Pension, wannit !

Trev any idea when this crash is going to happen?

Kez100

Romani_Ite_Domum wrote: »

I too bought in Cornwall in 1990. It was a renovation project so I did increase the value of the property considerbly. I sold in 1994 at a slight loss.

Best thing was I was able to trade up from a 2 bed EOT to a 4 bed detached with relative ease.

Same here. We traded up to a house we will never move from. It was a 'stale' property which had been on the market for a couple of years marketed at 120k. We bought it for 75k they were so desparate to sell.

What I do remember is that prices didn't just drop and keep dropping. They would drop then become static or slightly rise (hence why we bought in 1991) and then after a few months it would drop again.

What will happen, if its similar to the last crash, is that those in money problems, having to sell to move for work or repossessions will become more common. New buyers will be daft to buy ordinary places because they won't have the ability to accept cheeky offers and they will offer on the repossessions and to those desparate to move or sell up to repay unserviceable debts.

mystic_trev

mr.broderick wrote: »

Trev any idea when this crash is going to happen?

It'll start in 4th Qtr this year, but the main even will be 2008 when House prices will show a 20% yoy reduction, continuing into 2009.

I've seen it in me balls, so its got to be right?!

phlash

mr.broderick wrote: »

Trev any idea when this crash is going to happen?

It really tickles me how people try to discredit the bearish arguments by asking the poster to state when a property correction may happen!!

Come on mr.Broderick, at least offer a few arguments for why you think it won't happen? Rather than attacking people's viewpoints or 'motive' in each of your, dare I say it, ignorant posts. I haven't heard a constructive, thought provoking piece of prose from the posts that I have seen you write.

You've complained about the drivel that people go on about, but I can't even say that your posts amount to drivel, let alone hold any value worthy of response.

Running_Horse

It wasn't just the price, but the ability to sell at all, assuming you had no negative equity. Recently found a local newspaper from 1996 where lots of terraced houses were being put into auctions with guide prices of £20,000 (as opposed to £120,000+ today). Wonder how many of those sellers got back onto the property ladder.