London house prices start to fall

Guy_Montag

Compliments of Tom on GHPC:

US Mortgage Lending in the last three months:

May: $92.2bn, Jun: $41.6bn, Jul: $11.2bn

Linky linky

Running_Horse

Many people hate the Barbican, I like it in a brutalist kind of way, but it is hardly typical of the London market.

Melissa177

Running_Horse wrote: »

Many people hate the Barbican, I like it in a brutalist kind of way, but it is hardly typical of the London market.

I very much agree that the Barbican is not typical - I was using the graph to show why I thought the Fool figures were wrong, given that they said City of London prices are dropping, and the Barbican is the main residential area of the City.

lypsey

Mellisa , you say you don't believe these figures

I take a completely different view , the figures that come from the land registry are FACTUAL , if you truley believe the cr£p that Rightmove , Halifax and all the other vested interests I will call it a day know.

This crash that is just starting is going to be monumental , take 15 minutes and log onto Bloomberg and see what is happening in the finacial markets and you will sell your flat today and take the money. The hedge funds that we have built our stock exchanges over the last 5 years are going into terminal decline . Bear Stearns have just closed two fund with 1.5 Billion in them . Take a look at Germany and France and then take a look at how much money the European Central Banks pumped into the market yesterday (it was unprecidented) . The credit that we have gorged ourselves on is finishing alsong with our housing market because the BoE will not have to raise rates the "finacial markets" will do it them selves

Lastly it is a great shame but propertysnake who showed all the reduced prices in the housing market has been brought to its knees becasue Rightmove withdrew all their support. I live in Kent and the average days on the market was 130 days and the reductions of 10% were common

Come on wake up and smell the coffee , no market on the planet goes up for a decade without a correction

dannyboycey

http://www.ft.com/cms/s/53c159f2-4661-11dc-a3be-0000779fd2ac.html

Cissi

I agree with lypsey. In the article, the writer himself admits that in some cases there isn't enough data available for a valid statistical analysis, because so few deals have been completed (which in itself speaks volumes). That's why he points out that the most outlandish results should be ignored (detached properties in Hackney etc). But, ignoring these, there are some very interesting results indeed. I live in the borough of Richmond-upon-Thames, where almost everyone has been adamant that "prices here will never fall". Based on what I'm seeing happening with house sales around here, I have no problem believing the figures of a 3-4% downturn in the last quarter (which are based on large enough volumes to be significant).

I'm convinced that this is just the beginning.

Moorepart

Melissa177 wrote: »

I still don't think there is going to be a crash, but I can't help but wonder whether or not I should cash out and move on to the next renovation project! I've done my flat up quite nicely, but the cosmetic stuff is never worth 65K extra.

A very stretched valuation, supported by lies and massive hype,
doesnt make a crash any less likely - it makes it more likely.

If you cannot understand that, stay long, and learn from the pain to come:rolleyes:

Melissa177

lypsey wrote: »

Mellisa , you say you don't believe these figures

I take a completely different view , the figures that come from the land registry are FACTUAL , if you truley believe the cr£p that Rightmove , Halifax and all the other vested interests I will call it a day know.

But I'm quoting info from UpMyStreet, which is, erm, also taken from the Land Registry.

No one is seriously telling me that City of London prices have dropped 5% in the past year, are they?

Orion_3

The huge worldwide currency market volatility being seen at the moment could well affect the city boys' bonuses that have been pushing up London prices so much. It can't help anyway.

michaels

Way out in St Albans the market has definitely stalled since the spring when properties were selling within days - now they are hanging around for months - I guess price reductions may follow in the autumn.

Howevr I thought about STR middle of last year as I would save about 500 a month and live somewhere bigger but my house has added 20% plus in that time dwarfing the 6k saving that renting could have brought.