House Price Crash Discussion Thread

Thali

We just bought a flat and for us it's a mid-term investment as we're not even thinking of selling the flat in the next 2-3 years.

Prices in London aren't for real and what our EA told us when we've got the keys for our flat is that at the moment they have a lot of viewings but people have unrealistic views on prices. I mean - if a newspaper says, that prices are coming down - what do people expect? A £50,000 price drop for a flat in Earlsfield? I don't think so .... :rolleyes: And there is still demand! Flats around stamp duty will always be snatched away quickly. And if a 6 bedroom house in Richmond goes for £4mio or £3mio - who cares? Just ruins the statistics!

merlinthehappypig

lil_lady wrote: »

doubt my job would be affected badly ( beauty theapist) people all ways need to be waxed!

Absolutely - never mind that we can't afford food as long as I can get a good waxing when I need one.

boinging_2

Thali wrote: »

We just bought a flat and for us it's a mid-term investment as we're not even thinking of selling the flat in the next 2-3 years.

Prices in London aren't for real and what our EA told us when we've got the keys for our flat is that at the moment they have a lot of viewings but people have unrealistic views on prices. I mean - if a newspaper says, that prices are coming down - what do people expect? A £50,000 price drop for a flat in Earlsfield? I don't think so .... :rolleyes: And there is still demand! Flats around stamp duty will always be snatched away quickly. And if a 6 bedroom house in Richmond goes for £4mio or £3mio - who cares? Just ruins the statistics!

You seem to miss the point that it's these people going to view the flats that will determine the value not the EA. If they don't pay the asking price, then the seller can't sell. It's then either a stalemate, or one party has to move and with plenty of people on a massive mortgage about to come off a fix rate, I know which one I'd bet on to move first...

brit1234

Thali wrote: »

our EA told us when we've got the keys for our flat is that at the moment they have a lot of viewings but people have unrealistic views on prices. I mean - if a newspaper says, that prices are coming down - what do people expect? A £50,000 price drop for a flat in Earlsfield? I don't think so .... :rolleyes:

Unrealistic :rotfl:
How can these prices be unrealistic. For one it is widely known that house prices have been ramped up by fraud using gift deposits on newbuilds distorting the land registry figures upwards. Secondly lenders aren't providing stupid over the top loans any more. If someone can only get 3 1/2 x salary mortgage on a good wage and has a decent deposit how can this be an unrealistic offer. What do you expect him to do, sell his kidneys as well.

The fact is the cat is out of the bag. Everybody knows property values are overvalued and are falling because the banks are not going to lend stupidly anymore.

It is not the job of the estate agent to to say the offer is unrealistic they have to pass on the offer.:mad:

beingjdc

A 50k drop in a short time-frame is of course unlikely overall (though forced sellers will have to drop fast as buyers disappear), but the current Halifax London House Price Average is just over £300k. The derivatives market implies that in December 2010 it will be just over £262k.

Generali

beingjdc wrote: »

A 50k drop in a short time-frame is of course unlikely overall (though forced sellers will have to drop fast as buyers disappear), but the current Halifax London House Price Average is just over £300k. The derivatives market implies that in December 2010 it will be just over £262k.

It is true that is the implication of pricing but you need to think about what people who are in the market are doing there. Some will be taking speculative positions, sure, but a lot of people will be looking to hedge against a fall in the value of their BTL empire or whatever so there is likely to be a lot of downward pressure on the price.

BTW, reading Goldman's piece on markets and they mention house markets. They note a lot of leading indicators pointing to a fall in prices (eg mortgage approvals, RICS survey) - it's pretty bearish stuff but far from apocalyptic.

lil_lady_2

merlinthehappypig wrote: »

Absolutely - never mind that we can't afford food as long as I can get a good waxing when I need one.

like i said im new so dont beat me down , sarcasim is the lowest form of wit , do u like making people feel stupid?

neverdespairgirl

lil_lady wrote: »

doubt my job would be affected badly ( beauty theapist) people all ways need to be waxed!

Beauty therapy sounds incredibly vulnerable to a recession!

John_Pierpoint

neverdespairgirl wrote: »

Beauty therapy sounds incredibly vulnerable to a recession!

I'm not sure that is true; looking back at 1930 and 1980, personal grooming became more important. It might be something to do with getting a job, when there are lots of applicants for every position or whistling in the dark to keep spirits up. Like people who live in a slum but get dressed to the nines on Saturday night.

My impression of both recessions is of both males and females looking more "permed" than before and after.

MissMoneypenny

adr0ck wrote: »

how longs a piece of string?

Twice the distance from the centre to one end.:p