If this Property bubble BURSTS! what will happens to house prices?

Jane_gs

Whether we are in a property bubble or not (as some say we are, some say we aint), and if and when it burst,

then what happens to property prices? and also lenders in regards to offering people mortgages ? do they get tighter after the burst?

In regards of the property bubble/boom.... of 'house prices':

a) What happens to the 'house prices', before the bubble ?
b) What happens to the 'house prices', during the bubble ?
c) What happens to the 'house prices', after the bubble (when it bursts) ?

eg, rise, increase, stay the same for some years?


and In regards to lending companies/banks lending mortgages..then what happens:

a) What happens to lending companies lending for mortgages before the bubble ?
b) What happens to lending companies lending for mortgages during the bubble ?
c) What happens to lending companies lending for mortgages after the bubble (when it bursts) ?

ie, does it get harder, stricter, easier ?

can you answer in an a) b) c) manner please, for simplicity please

TruckerT

Jane_gs wrote: »

Whether we are in a property bubble or not (as some say we are, some say we aint), and if and when it burst,

then what happens to property prices? and also lenders in regards to offering people mortgages ? do they get tighter after the burst?

In regards of the property bubble/boom.... of house properties:

a) What happens to the house properties, before the bubble ?
b) What happens to the house properties, during the bubble ?
c) What happens to the house properties, after the bubble (when it bursts) ?

eg, rise, increase, stay the same for some years?


and In regards to lending companies/banks lending mortgages..then what happens:

a) What happens to lending companies lending for mortgages before the bubble ?
b) What happens to lending companies lending for mortgages during the bubble ?
c) What happens to lending companies lending for mortgages after the bubble (when it bursts) ?

ie, does it get harder, stricter, easier ?

The only thing you can be certain of is that the lenders will continue to profit, and that the borrowers and/or the taxpayers will pay the price.

TruckerT

WellKnownSid

Jane_gs wrote: »

In regards of the property bubble/boom.... of house properties:

a) What happens to the house properties, before the bubble ?
b) What happens to the house properties, during the bubble ?
c) What happens to the house properties, after the bubble (when it bursts) ?

eg, rise, increase, stay the same for some years?

It is highly likely that 'house properties' will remain 'house properties' before, during and after the bubble. All the evidence shows us that, in previous bubbles, there has been no tendency for houses to turn into, for example, bananas.

Jane_gs wrote: »

In regards to lending companies/banks lending mortgages..then what happens:

a) What happens to lending companies lending for mortgages before the bubble ?
b) What happens to lending companies lending for mortgages during the bubble ?
c) What happens to lending companies lending for mortgages after the bubble (when it bursts) ?

ie, does it get harder, stricter, easier ?

Define the difference between harder and stricter?

Jane_gs wrote: »

can you answer in an a) b) c) manner please, for simplicity please

Why, is this a homework question?

chucky

Buying property is always a gamble, a bit like in a casino. The house always wins...

black_taxi_2

you have to look at a property on its own,regardless of bubble,can u afford it,can you pay if rates reach 5%

I was told I was overpaying for my flat 28k---1995,now worth 100k.but if I want to move up ladder,it makes no diff because other property increased in price,so I need a decent deposit

Sibley

We have seen what happens.

Prices stagnate until economy sorted then up they go again.

sheffield_lad

Maybe I can set up a web site house price crash site?

Scare millions into renting on the belief that house prices will crash by a min of 60%!

oop's sorry that was done back in 2003

chewmylegoff

I'm not sure millions were scared by HPC. Only about ten people have ever heard of it and five of them seem obsessed with what happens there and post all about it here. Everyone else thinks it's just a couple of d!cks ranting on the Internet.

HappyMJ

Jane_gs wrote: »

In regards of the property bubble/boom.... of house properties:

a) What happens to the house properties, before the bubble ?
b) What happens to the house properties, during the bubble ?
c) What happens to the house properties, after the bubble (when it bursts) ?

Depends if you left the gas on or not. The house property may burst so I'd suggest you trn the gas off to avoid that.

Moby_Tide

a) the house is worth what someone will pay for it
b) the house is worth what someone will pay for it
c) the house is worth what someone will pay for it
a) haven't I already answered a? they lend people money
b) haven't I already answered b? they lend people money, people ask for more money
c) haven't I already answered c? they lend people money, less people ask for money until a) (the second a) not the first a) because that would be confusing)

Loughton_Monkey

After very deep thought, I have concluded that bungalow properties and flat properties behave similarly to 'house properties' when bubbles burst.

The behaviour of those who own them, however, varies enormously.

It can cause extreme stress, and in extreme cases, the disease known as 'negative equity'. Paranoia can set in, causing one to blame bankers, governments, USA, Boomers, and Goldman Sachs to name a few.

If symptoms persist, see a doctor.