What could happen to house prices?

smudger1946

I will wait to buy MY NEXT HOME PROJECT for a while, there may be a bargain or two, after the other filthy word starting with X88S, YUK.
SMUDGER

tr3mor

IveSeenTheLight wrote: »

There appears to be a lot of people waiting for the crash before buying and a lot of people who are FTBers that cannot get the house of their choice (note I did not say could not get on the ladder). Add to this many BTL investors who will also want to get in on the lower house price deals.

People, especially investors, are going to be wary of buying in a falling market. You won't see many more house sales until we start to see rising prices again.

LandyAndy

IveSeenTheLight wrote: »

No, looking back further will provide a better factual analysis as to the effect of house prices AFTER a housing price crash.

IF a crash were to happen again, this will show what is likely to happen to house prices after the crash (similar trend)

In fact it will not be exactly the same, there are many other factors which are different this time (lower unemployment, lower interest rates etc) so if anything I would pervieve the rebound after the crash to be much quicker.

Let's presume that house prices do crash, what will happen?
There appears to be a lot of people waiting for the crash before buying and a lot of people who are FTBers that cannot get the house of their choice (note I did not say could not get on the ladder). Add to this many BTL investors who will also want to get in on the lower house price deals.

What does this mean?

I am no economic expert but it would appear that you would have an even greater demand than what we have had in recent years.
Unless supply was to miraculously be available to meet the demand, you are likely to see a rebound of the house prices with the bull more rampant than ever.

It may be that house prices will yo-yo like this for as long as there is a supply shortage.

One thing will remain though and that is that over the long term, house prices will rise

Now you have to say 'waiting to jump down the snake's throat'

IveSeenTheLight

LandyAndy wrote: »

Now you have to say 'waiting to jump down the snake's throat'

Surely covered by "people waiting for the crash before buying ":p

mystic_trev

IveSeenTheLight wrote: »

I am no economic expert but it would appear that you would have an even greater demand than what we have had in recent years.
Unless supply was to miraculously be available to meet the demand, you are likely to see a rebound of the house prices with the bull more rampant than ever.

No you're right, you're not. The same thing happened before the last crash and you've mistaken 'supply and demand' for sentiment.Positive sentiment = I've got to buy before it's too late. Negative sentiment = I've got to sell before it's too late!

tr3mor

IveSeenTheLight wrote: »

One thing will remain though and that is that over the long term, house prices will rise

Who cares about the long term? It's prices in the short term that matter to me.

I want a great big huge monstrous massive crash so that I don't spend the next 25 years paying for an overpriced sh*thole.

SquatNow

tr3mor wrote: »

People, especially investors, are going to be wary of buying in a falling market. You won't see many more house sales until we start to see rising prices again.

Yes and they wont start rising again until people start buying.

This is why there is no such thing as a "correction"... any drop in prices always causes a crash.

IveSeenTheLight

tr3mor wrote: »

Who cares about the long term? It's prices in the short term that matter to me.

I want a great big huge monstrous massive crash so that I don't spend the next 25 years paying for an overpriced sh*thole.

Short Term, Short sightedness

IveSeenTheLight

mystic_trev wrote: »

No you're right, you're not. The same thing happened before the last crash and you've mistaken 'supply and demand' for sentiment.Positive sentiment = I've got to buy before it's too late. Negative sentiment = I've got to sell before it's too late!

Oh mystic_trev.
Try opening your eyes and reading the whole post.
I was referring to what would happen AFTER a house price crash:rolleyes2

tr3mor

IveSeenTheLight wrote: »

Short Term, Short sightedness

I am planning to buy a house at some point in the next 5 years. I guess I will be paying for that house over the following 25 years.

Hence I should care more about what prices are going to do in next few years when I am buying rather than caring about what's going to happen after that.

Surely it makes sense to buy when prices dip rather than at a ridiculous peak?