House Price Crash Discussion Thread

dweeby

Dawes wrote: »

About the house price market ask yourself one single question - could you afford your property if you had to buy it at the market value today?

Whilst I agree with what you're saying, it isn't quite that simple. I think you're implying that "people" just can't afford housing, but they can and they will. For one thing, money is re-cycled from one generation to the next.

My opinion is that the crash has been going on for quite a while, perhaps 9 months in real terms? but I also believe that in many places a ~30% downward adjustment will happen by prices stagnating whilst inflation marches forward at eg 3-4%/annum.

There are vastly different pictures in different parts of the country. In some places £250k will buy you an ex-council house, where I live you'll get a 5 bed, 2-3 bathroom, 2 garage detached super-house. Prices in these 2 different areas are going to react very differently.

Where I live, you can still buy a house for ~£70k, not very nice - but affordable to many.

neverdespairgirl

dweeby wrote: »

. In some places £250k will buy you an ex-council house, where I live you'll get a 5 bed, 2-3 bathroom, 2 garage detached super-house. Prices in these 2 different areas are going to react very differently.

Where I live, you can still buy a house for ~£70k, not very nice - but affordable to many.

In central London, £250k won't necessarily get you more than a studio flat.

hearts

hgllgh wrote: »

As I suspected ... we just have a load of overlapping discussion threads.
AND, Divadee has closed my thread on this matter.

Does anyone else think we should push for a House prices board?

All we need is one more board... Rename the existing board to:-
"House Buying, Selling, and Renting"
and create a new board for "House prices".

To shove this most important issue into a sticky is ridiculous.
For example. The credit cards board has a sticky for "Egg Loophole - Case Study needed". So House prices are on a par with an Egg loophole?

No we don't need a new board for this. It's one subject and it has what it needs one thread ;-)

pickles110564

Generali wrote: »

It would be interesting to see how the rents are being paid - are the rents now being paid largely out of private money or is a large proportion welfare/HB.

I'll have to look into it I think, unless anyone else knows. Anyone?

Out of our 4 rentals, 1 welfare 3 private money, however i would prefer all 4 to be welfare as they pay on time every month and at a fair rental price.

Generali

pickles110564 wrote: »

Out of our 4 rentals, 1 welfare 3 private money, however i would prefer all 4 to be welfare as they pay on time every month and at a fair rental price.

I wouldn't because I have to pay their rent!

Vincenzo

What is this thread about again? The house price crash? What house price crash????

All I have seen so far is a temporary slowdown in demand due in a large part to negative press and a tightening of lenders' criteria. AND on a more significant note, an eventual realisation by many armchair buy-to-letters that they have been buying over-priced newbuilds that they can't let! More fool them. AND lets not forget the over-zealous housebuilders who have been overpricing the market by offering incentives of up to 30% of the so-called 'market price'. I just hope that this little scare in the market will bring an end to these practices and reinstate some form of calm in the market.

I do not doubt that many people have over-paid, nor that many more repossessions will take place this year and the next, nor do I doubt that there will be little if any growth in the AVERAGE house price for a few years. BUT the market HAS NOT and IS NOT crashing!

I am not saying it won't happen, or that it can't, just that is isn't yet!

mr.broderick

Vincenzo wrote: »

What is this thread about again? The house price crash? What house price crash????

All I have seen so far is a temporary slowdown in demand due in a large part to negative press and a tightening of lenders' criteria. AND on a more significant note, an eventual realisation by many armchair buy-to-letters that they have been buying over-priced newbuilds that they can't let! More fool them. AND lets not forget the over-zealous housebuilders who have been overpricing the market by offering incentives of up to 30% of the so-called 'market price'. I just hope that this little scare in the market will bring an end to these practices and reinstate some form of calm in the market.

I do not doubt that many people have over-paid, nor that many more repossessions will take place this year and the next, nor do I doubt that there will be little if any growth in the AVERAGE house price for a few years. BUT the market HAS NOT and IS NOT crashing!

I am not saying it won't happen, or that it can't, just that is isn't yet!

Nice post it's kinda what i've been saying recently.

ManAtHome

Doesn't "Brikz R gr8 weekly" have a more general economics page (or is it written by "miracle eCon GB(H)")?

IveSeenTheLight

mr.broderick wrote: »

a man with my calibre and earnings should be able to afford a 5 bed detached with 2 ensuites and not be stuck in a pokey 3 bed semi, bring it on.

Move to a different area then, I'm sure you could get your 5 bed detached 2 bed ensuite.;)

If you are loooking for this in an area like London, you may find your calibre and earnings may be dwarfed by others who are more affluant.

London always has and always will be a much different market to the rest of the UK

dweeby

mr.broderick wrote: »

I hope they come down, a man with my calibre and earnings should be able to afford a 5 bed detached with 2 ensuites and not be stuck in a pokey 3 bed semi, bring it on.

Heh! We all have choices throughout our lives, and whilst we all might want (or think we deserve) "more" - isn't that what causes house prices to increase and hence the situation we're in right now?

If that's what would bring you hapiness, there are plenty of cheap houses in Poland (and as the standard of living increases there - you're house will probably increase in price greatly!).