Is property in a bubble?

padington

AG47 wrote: »

So the conclusion is by these definitions of a bubble there is no doubt property is
a very big bubble

The key ingredient is not washing up liquid. Its an ever growing system of monetary debt together with extremely tight planning laws and increased population.

The word bubble confuses the issue. Property has never gone to nothing like a bubble does. I wouldn't expect it to do that until the fat lady sings.

A better question would be - Will their be a crash and if so when? My answer is 'yes' and 'who knows'.

However if anyone might have an idea, I reckon its this bloke ...

http://www.marketoracle.co.uk/UserInfo-Nadeem_Walayat.html

He's very pro Brexit though, not my bag.

He basically says Yes, not until 2019 though.

AG47

Looks like a lot more falls to come as the bubble is letting air out.

AG47

Property in the uk is now in a bear market, but why buy now when you prices will be lower if you wait even longer.

All those poor sellers trying to undercut each other.

chucknorris

AG47 wrote: »

Property in the uk is now in a bear market, but why buy now when you prices will be lower if you wait even longer.

All those poor sellers trying to undercut each other.

We viewed a house last week, these were the estate agent's exact words:

'We have two appointment slots left available on the open day, but from what you have said, I don't anticipate any bid you make will be seriously considered, as there are already 3 cash potential buyers and I expect the house to be sold for at least the asking price (£700k, and it needed a lot of work) on the same day. This was in my home town of Dorking, which is definitely NOT in a bear market.

My wife is about to put an investment property up for sale, and we have decided to wait until that is sold, so that we are in a cash buyers position before we upsize our home.

EDIT: That house was sold two days after the opening day, we didn't like it that much anyway (the rooms were not large enough).

Jack_Johnson_the_acorn

AG47 wrote: »

Property in the uk is now in a bear market, but why buy now when you prices will be lower if you wait even longer.

All those poor sellers trying to undercut each other.

In the short term we are likely too see even lower interest rates and a higher interest from foreign investors as the £ is so low they get even more for their money.

Keep up the good work

AG47

Interest rates will be going back to normal sooner than many expected to bolster the falling pound, lots of mortgage payers going to be in serious trouble when interest rates in the uk normalise

chucknorris

AG47 wrote: »

Interest rates will be going back to normal sooner than many expected to bolster the falling pound, lots of mortgage payers going to be in serious trouble when interest rates in the uk normalise

It will be a long time before we see a 5% base rate again, and even then it would merely a return to normal profits (instead of very high profits).

Garethgrew

The bubble will deflate slowly rather that pop in a short time.

AG47

chucknorris wrote: »

It will be a long time before we see a 5% base rate again, and even then it would merely a return to normal profits (instead of very high profits).

Yes, just like the USA it's going to be small incremental rises every now and then, the same way property will be falling slowly a little more every year for years yet.

chucknorris

AG47 wrote: »

Yes, just like the USA it's going to be small incremental rises every now and then, the same way property will be falling slowly a little more every year for years yet.

As I said I've heard it all before, the thing is you'll still be saying the same thing in 10 years from now.