House market

dominoman

w00519772 wrote: »

I have recently completed a purchase. I was like you; waiting for a long time thinking that prices would fall at least a bit. They never did. They rose and I ended up paying more. I would of bought straight away in highsight.

There was a "crash" (credit crunch etc) in 2007 and prices did not fall that much. I see property prices rising at least for a long while yet because of short supply.

Here is an article I found about Hampshire: http://www.gethampshire.co.uk/news/local-news/house-prices-rise-50-next-6398087

That article is laughable. "prices will go up by 44% in Rushmoor by 2020, while rental prices will increase by 42% in the same period". Let's look at a chart of the last three years and then draw a straight line out to the future.

Perhaps that journalists next article could tell us next week's winning lotto numbers. That really would be useful.

Davesnave

w00519772 wrote: »

There was a "crash" (credit crunch etc) in 2007 and prices did not fall that much......

For the historians among you, it was 2008/9, although the Northern Rock debacle was in the autumn of 2007, sparking off the nervousness. The bottom was Spring 2009.

We sold in 2008 at 18% less than 2007's agreed price (to a self-certing Northern Rock customer!) and that was in one of the most desirable cities in the country.

I call that a Crash, not a "crash."

If anyone is hoping for more than the falls at that seriously worrying time, my thoughts are 'dream on.'

ukcarper

dominoman wrote: »

That article is laughable. "prices will go up by 44% in Rushmoor by 2020, while rental prices will increase by 42% in the same period". Let's look at a chart of the last three years and then draw a straight line out to the future.

Perhaps that journalists next article could tell us next week's winning lotto numbers. That really would be useful.

That article was dec 2013 they are already up 10 to 20% but I agree I would take articles like that with a big pinch of salt.

needabed

So loads of people start waiting and gathering bigger deposits for the day the interest rate rises probably 0.5% thinking prices will tumble... But guess what? prices actually go up due to the huge demand that's built up!

verulamium

I still remember in 2002 when my ex-boss insisted that it was best to wait for a crash. I bet he is still waiting. In the meantime all his rental cash goes to paying someone else's mortgage.

[Deleted User]

The crash is coming. Too many people stretching to buy with money they can't afford to borrow. The Bank of England can't ignore it forever and the government is completely inept, so eventually it will come to a head and crash.

Interest rates will go up, demand will fall, the market will flood with repossessions... Can't say which, but something will break.

ML420cdi

Prices will settle, some good 10yr fixed deals around....

blinko

DELETED USER wrote:

The crash is coming. Too many people stretching to buy with money they can't afford to borrow. The Bank of England can't ignore it forever and the government is completely inept, so eventually it will come to a head and crash.

Interest rates will go up, demand will fall, the market will flood with repossessions... Can't say which, but something will break.

yes demand will fall. what makes you say that

[Deleted User]

blinko wrote: »

yes demand will fall. what makes you say that

At some point it has to come down, because the current level cannot be sustained. Eventually interest rates will go up, or houses will just become unaffordable.

BigAunty

I don't understand the notion that somehow property prices are protected because of 'short supply'.

The market is an emotional place. When confidence levels fall, so too will prices. So if things like interest rate rises, tougher screening around affordability and 4.5x income lending have an impact, there will be less demand by buyers because there will fewer of them.

Properties can and have tumbled spectacularly in the past despite the fact that new building hasn't kept pace with the rise in population and household numbers for decades. Supply hasn't been generous but if the market becomes nervous, then this will not be a relevant factor.