**Don't Buy A House** House Prices Set To Crash!!!

dougk_2

deefadog,

If the unlikely "crash" happened say 6 months after you bought, the chances are it will have more than recovered by the time 10 years is up (even at normal inflation rates).

And everyones circumsatnces change so you may find you have paid off your mortgage early and saved a packet in interest!

My view is something is better than nothing and money is no used to you if you don't do something with it!

ivegotabig1

I agree, house prices are just sooo over inflated, that no matter what spin the Halifax or Abbey (i dont believe anything they say now!) put on things they simple have to come down !! PERIOD !!!!!!! remember, the stock market peaked at just over 7000 points as i recall, two years later it bottomed out at about 3500 !!! how many financial "experts" would have predicted that ?? answer .....NONE. or none that i heard of anyway.. problem is because so many of us own our homes we just dont want to be realistic, we just like to stick our heads in the ground or listen to others that tell us prices will remain stagnent..

deefadog

Well said dougk!

Me and my family are not going to hang about waiting for a better deal where crashes are concerned!, just got to get on wit it and live live to th max

What is that old story about the guy who never want to take any risks and never left his bed and a freak accident happened and church spear got blown off and impaled him in his sleep!

enough said

nelly_2

I was reading on the BBC's website the other day that the average house was only making 93% of the asking price these days. Which is a 7% drop already.

My opinion is that the prices are a joke, I personally can easily afford to buy a house but I flatly refuse to pay what people are asking. And a lot of people are saying the same, either they cant or wont pay.

I have also noticed a lot of streets are getting 2 3 4 or 5 houses for sale on each street, a sure sign of the impending.

I want a house to live in and enjoy as something of my own and I really cannot stand these tight arsed greedy gits who harp on about how their house went up 15 quid last week.

lisyloo

"I was reading on the BBC's website the other day that the average house was only making 93% of the asking price these days. Which is a 7% drop already."

This is rubbish.
House price don't usually acheive 100% of their asking price which is what you are compring with.
If you look around you should be able to find graphs that show historicall % of asking price acheived (I think hometrack do one in their reports).

I can assure you that it has NOT fallen from 100%, although it has fallen somewhat recently.

lisyloo

On page 6 of the latest hometrack report (link below) is a graph of the % of asking price acheived from March04 to Feb05.

You will see that it has never been 100%.
You will also see that it has been falling but in Febrary it started picking up.

http://www.hometrack.co.uk/index.cfm?fuseaction=news.viewnewsitem&newsid=98

IvanOpinion

Sorry, I am new to this debate and don't have time to read a couple of hundred posts (so read the first couple and last couple of pages) - therefore apologise in advance if I am repeating anything.

I would say that houses, like everything else, are worth what people will pay for them and from my understanding, there are a lot of first time buyers trying to get onto the property market which is hepling to push prices up. It may only be my perception but the price of a bottom of the market house seems to be pushing up towards that of a middle range house - showing the demand at the bottom end of the market.

The other thing that surprises me is the number of young couples that are currently purchasing large detached houses. In my day (start the Hovis music) newly weds just about afforded a reasonable semi-detached. In our neghbourhood of medium sized detached houses (2000-2500 sq.feet) there are a lot of young couples - I don't know how they can afford the houses?

I would still think that in the long term a house is possibly the best investment that you can make - the only decision being exactly when to step onto the ladder.

ivan

deefadog

The confusing aspect of all of this at the moment is how do you judge the worth of a house these days??

I mean going back 5 1/2 years when we first bought our Bungalow it was fairly easy houses had a set price, like you new if you were going for a 4 bedroom detached house you would be paying between a certain amount in certain areas!

is there a rule of thumb that can be used to compare a similar house from back then to now? and then i could work out from what we paid for ours and what it is worth now!

Cheers

Woby_Tide

nelly wrote:

I was reading on the BBC's website the other day that the average house was only making 93% of the asking price these days. Which is a 7% drop already.

What if the asking price was 10% over the expected value?

nelly wrote:

I want a house to live in and enjoy as something of my own and I really cannot stand these tight arsed greedy gits who harp on about how their house went up 15 quid last week.

Stop moaning and buy one then, tight arsed greedy gits? Erm I think you'll find that they are classed as homeowners, when you buy a house eventually you'll become a tight arsed greedy git too by that rationale.

dougk_2

When I purchased my first house in 1999 I paid 94% of the asking price.... however I actually paid only 85% of the original asking price as the price had recently dropped when I enquired initially.

Its nothing new to pay 95% or less than the price advertised. Prices in the area where I am do not seem to be falling rather the advertised prices have INCREASED since the end of January... The falls came at the end of last year.