Interesting article in Telegraph on prices...

dannyboycey

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/05/28/nhomes28.xml

If you're a first time buyer, the sensible advice is wait and start saving.

CB1979_2

really?

but what if it doesn't happen?

what if people can't rent & save?

and what if house prices don't come down!

meanmachine_2

CB1979 wrote: »

really?

but what if it doesn't happen?

what if people can't rent & save?

and what if house prices don't come down!

Once again, the media are taking a very London-centric view.

In many parts of the country prices have been nudging down for the past 6-12 months..

I'd love to see the stats on the market minus N Ireland's 50% boink and prime London's insanity.

blue_monkey_2

We can't afford to buy but I do read the Houses section of the local paper each week out of interest and I have definately noticed the price of houses coming down now and we live in East Herts which was notoriously expensive. Still can't afford to buy, but then neither can a lot of other people week there are more 'reduced' tags appearing on those houses.

The other thing is that in the village we have a EA that 'specialises' in selling in this area, he prices around 100k on each property MORE than the other agents in the next town (I know this as a friend has her house valued at 350 but the local guy and 250 by the guy in town) so everyone lets the local guy sell for them as they will get more money (fair enough). However, I have noticed that there are more and more boards going up from the town estate agents because people just cannot afford the houses, so sellers they are opting to take the lower prices this other EA prices at. I do find it interesting the way that it is going and have even seen 3 beds dropping below the 200k mark in this area which is unheard of for years. Maybe one day though we will be able to afford something but can't see it is going to be for a very long time yet.....

I know loads of people who are either living with their parents and those that have bought are having to watch every penny to pay their mortgages, it does have to end somewhere as there will be a generation of people that can't afford to buy - people cannot live with their parents forever, we have been on the HA waiting list for 8 years without even a whiff of an offer and we have 2 children as well. The houses sell and they do not buy more, those that go up are tiny and nothing like the houses the councils used to have for families to live in, most are 2 bed as well. Sadly we are waiting for the old people around here to die and then we can get onto the council/HA for their house. Sad but true. Lots of elderly couples and single people that are still living in 3 bedroom council/HA houses in this estate. I guess I would not expect them to move but they could really shouldn't they and should the HA/council reshuffle when people get to 60? i know of one elderly couple ho tried to move to a smaller 1 bed property from a 3 bed and the council told them no, they could not move and they ended up sorting it out for themselves. But this way there would be more houses for those of us who need it because we can't afford the £800 a month rental prices they are asking for on a 3 bedroom house around here and with one boy and one girl that is what we need.

I am not complaining, I am OK with what I have here and if I got desperate I know I'd get a hostel or something but I know I can't stay here forever and what happens when we have to go, I really do not know as we can't afford to rent or buy at the prices they charges. After rent, council tax, water and electric, there would literally be nothing left for food. Scary.

phlash

CB1979 wrote: »

really?

but what if it doesn't happen?

what if people can't rent & save?

and what if house prices don't come down!

Put it this way....If I was a betting man then I would be betting that house prices will be going down. In the words of Mervyn King "House prices and wages always come into align". I certainly don't see 100% wage growth, meaning that house prices coming down seems quite plausible.

I'm intrigued CB, do you really feel there's much room left in order to keep inflating what is an obvious asset bubble? I keep hearing people say that they think a correction won't happen, but to me the evidence seems very one sided. I'm not predicting a time period for a correction, merely stating that the indicators point one way, and thats down.

CB1979_2

nope phlash, I'm not saying that at all, people on here to seem to think I'm pro HPI, obviously as a home owner I'd like HP to keep on rising though!

would i sell to rent? of course I would if i felt I would be better off!

see phlash you are in the minority (and possibly me too) I KNOW (well 99% sure house prices will come down/stabilise) but I just get fed up with all the "end is nigh" type posts, even the most simplist of people (myself included) can see the numbers don't quite stack up and eventually something's gonna have to give and obviously House prices are much easier affected than everyone get a pay increase.

obviously my "experience" and views are biased as I live in the South London/Surrey borders and all I'm seeing at the moment is places shifting (I'm mainly talking about 2 bed flats as that's what I look at & the big £500-750k places that get turned into flats! lol)

I wholeheartedly agree with you all the indications are showing HP to decrease, but then these indicators have been quoted for the last 3-4 years! granted though there's more & more now.

the thing is I just don't agree with everyone saying hahaha IT IS going to happen soon
who are we to determine "soon", soon could be another 2 years or it could be 2 months, who really knows.

phlash

Well I can also understand why my opinion is very bearish. Living in Nottingham means that I can see many reductions just outside my door. I believe Nottingham will be one of the first Cities to fall, in fact it has, 2% YoY.

nollag2006

I wouldn't worry too much.

Headlines like this are what sell newspapers.

Prices in my area in Herts are still pumping ahead: with interest rates nearing the top of their cycle, and the economy strong, there is no reason to believe the scaremongerers.

I have a friend who sold up two years ago, as they felt the peak of the market had come, and who is now busily trying to claw his way back onto the ladder ...

meanmachine_2

nollag2006 wrote: »

I wouldn't worry too much.

Headlines like this are what sell newspapers.

Prices in my area in Herts are still pumping ahead: with interest rates nearing the top of their cycle, and the economy strong, there is no reason to believe the scaremongerers.

I have a friend who sold up two years ago, as they felt the peak of the market had come, and who is now busily trying to claw his way back onto the ladder ...

Dear god, which normal person says "pumping ahead", except for some oily estate agent in a naff suit?

Please do tell us which part of Herts is "pumping ahead" and we'll all have a look on propertysnake to find out.

"pumping ahead". Oy vey...

nelly_2

lol
heres a list of post codes in herts

I 'pumped' a few into http://www.propertysnake.co.uk/

I think I found 1 that didnt have big drops

Pumping my @rse .............no ta

dannyboycey

meanmachine wrote: »

I'd love to see the stats on the market minus N Ireland's 50% boink and prime London's insanity.

Exactly. By including these, they are skewing the figures to paint a very different picture of what is actually happening.