Media Is Now Predicting A Massive 40% Property Price Crash

patel007

We have put off buying another property for the last 6/9 months as we too expect a long over due price crash, but not the 40% predicted in the link but more like 30% in London at least.

We have noted that estate agents will always remanin bullish but properties going up on over inflated prices then 2/3 weeks latter reducing prices and whn sold, they sell for even less.

Prices are too high but rates at all times lows we can only see 30% down - the LTV is very, very high and the extra tax on second properties and tax releife reductions all will impact and once foreind investors make a run for it when the gov brings in new rules for foriegn buyers, CRASH - around london many prive, high rise developments are empty you can tell at night as no lights on, all waiting for a crash I Iguess


Here

http://www.dailymail.co.uk/news/article-4657812/Britain-brink-housing-price-collapse.html

quote from link

Such a shift could push many thousands of recent buyers into trouble. From 1989, the price boom fell apart over the next six years, with prices plunging by 37 per cent.
In its most recent figures, The National Association of Estate Agents reported the number of homes sold in May for less than the asking price rose to 77 per cent.
According to Prof Cheshire, the fall in real incomes – when wages fail to keep up with inflation – is likely to be the spark for a fall in house prices. I


Read more: http://www.dailymail.co.uk/news/article-4657812/Britain-brink-housing-price-collapse.html#ixzz4lfRi3inJ
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Updated Sunday 9/7/17 - More evidence re-looming property price crash:

Here
http://www.dailymail.co.uk/money/mortgageshome/article-4677680/RICS-data-expected-house-price-growth-slipping.html





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00ec25

there is a separate board for DEBATE HOUSE PRICES, it is here:
http://forums.moneysavingexpert.com/forumdisplay.php?f=149

the reason for that is to keep speculative nonsense away from this board where genuine people ask real questions needing real help.
Not posts from Daily Fail readers about articles they do not understand

either you need a place to live or you don't. Congratulations on taking 9 months to find an article to support your view.

Davesnave

Take your badly-written speculation over to Martin's broom cupboard, where they'll welcome you with open arms.

http://forums.moneysavingexpert.com/forumdisplay.php?f=149

SuboJvR

Although this isn't the proper place for the discussion I would like to offer another media based counterpoint to hopefully balance the thread, which hopefully demonstrates that still, no one knows for sure, and the media relies on sensationalist headlines to sell papers.

http://www.telegraph.co.uk/business/2017/06/29/mortgage-market-stabilises-house-prices-slowdown-comes-end/

GingerFurball_2

House prices are still rising- they're just rising less steeply than 12 months ago. Particularly in markets like London, which went insane.

Koldweather1

The only way we 'crash' is we have a big hike in Interest Rates (probably as fast as they went down in 08). However that would be a party killer for any government. So many people have become reliant on low IRs over the past decade it just won't happen...exactly for the same reason no one will ever be able to scrap the triple lock on the pensions, way too many vested interests.

I'm not saying we won't see a slow and steady correction (say a 1-2% drop a year for a few years) whilst inflation and hopefully at least some wage inflation will help to catch the wage-house price ratio up somewhat, as it is way too high at the moment.

Can't yet see any reason for a crash yet, it will only happen if IR go high fast, like 3-5% a year) (Brexit is the only mechanism that could do this IMO, govt/central bank will NOT do this on under their own steam) AND the supply increases pretty drastically in that time. Correction needs to happen IMO for the sake of the younger generation.

By the way, I'm a FTB right now, so am probably buying near the peak IMO, but I've got a fairly decent buffer in terms of equity and will overpay in a big way so help grow that buffer just in case I am wrong! A crash only means I'll get the next house for less money....

patel007

Are you lot estate agents by any chance?

Like I said, estate agents, many of them will give sellers in london at least unrelaistic prices, and then down grade them and then pursauded sellers to sell for even less.

Aroud where I live, if a detached or a nice semi came up, snapped within a week, and at times for more than asking price, now on the market for longer, and in some instances down graded price.

The last 3 years where we live, prices have almost doubled, how can this be sustainable.

For sure, no one knows exactly when or what will trigger the crash if they did, they would be trillionairs and thats a fact.

Just becuse you disagree, no need to trash my thread, just stick to the once you beleive in, simple as that

SuboJvR

We're not crashing your thread, we are discussing the subject with you. This is the point of discussion forums, no?

parking_question_chap

The media predict a lot of things that are over dramatic.

If the article said, house prices fall 3% this year, I doubt they would have got many people clicking on the article.

They just make headlines to get clicks, actually reporting the truth is a distant second.

patel007

Koldweather1 wrote: »

The only way we 'crash' is we have a big hike in Interest Rates (probably as fast as they went down in 08). However that would be a party killer for any government. So many people have become reliant on low IRs over the past decade it just won't happen...exactly for the same reason no one will ever be able to scrap the triple lock on the pensions, way too many vested interests.

I'm not saying we won't see a slow and steady correction (say a 1-2% drop a year for a few years) whilst inflation and hopefully at least some wage inflation will help to catch the wage-house price ratio up somewhat, as it is way too high at the moment.

Can't yet see any reason for a crash yet, it will only happen if IR go high fast, like 3-5% a year) (Brexit is the only mechanism that could do this IMO, govt/central bank will NOT do this on under their own steam) AND the supply increases pretty drastically in that time. Correction needs to happen IMO for the sake of the younger generation.

By the way, I'm a FTB right now, so am probably buying near the peak IMO, but I've got a fairly decent buffer in terms of equity and will overpay in a big way so help grow that buffer just in case I am wrong! A crash only means I'll get the next house for less money....

I agree with some/most of what you have said as already posted "no one really knows when crash will happen." But when it does, normally out of the blue, a straw that breaks the cmales back, the unexpected news is the excuse and the govenrent will then blame the crash in property, retail, stocks,, jobs on "world events," but when their is success, the gov fails to mention "world events."

Indeed, like i said, prices in london are ready to crash big style esepcially aparment blocks being bought by the dozen by Chinese, Russians, Indians, South Afriacnes and other oversea nationes - but some or many of these apartmsn in cnetral lond, the service charges are MASSIVE, but on a rising market buyers don't care, but when prices fgoing doen, buyers will beat down prices when taking the massive service charges into consideration, EG outside central london on developments by the river, mid sized 2 bedroom aparments with some kind of river view wich may be blocked with another building when it goes up, and no cosierge service, approx 7/8k, plus coucil tax, plus bills and no gym/faiclities in the block - a block with sceurity.consierge, lifts x 2 and a gmy/etc 11k at least - trust me once the prices start falling, a domino effect will take over and apartments fall the fastes and rise the slowest.

patel007

parking_question_chap wrote: »

The media predict a lot of things that are over dramatic.

If the article said, house prices fall 3% this year, I doubt they would have got many people clicking on the article.

They just make headlines to get clicks, actually reporting the truth is a distant second.

I agree as said in one of my posts, but please read my previous post, it is long overdue