House Price Crash Discussion Thread

pamaris

simon_w wrote: »

I am an estate agent of 27 years experience.
I connat remeber demand having slumped so quickly in just a matter of weeks, compounded by bad Press ie Northern Rock etc. In simple terms the market has stalled and selling prices are falling. Many homeowners and estate agents have not yet realised what is happening.
I saw this all in 87-92 when prices dropped 65%.
Smart homeowners will actually reduce prices now, rather than following the market down. I recall a property locally that we had on the market for 2.5 years in 1989. It stated at £350,000 and eventually sold for £189,000. The owners were always to late in reducing their price to its 'market value'.

Forgive me but whenever I see a post like this I am skeptical... it is all the things that priced out FTB's / property bears want to hear... not something we are accustomed to hearing from estate agents.

ivegotabig1

ivegotabig1 wrote: »

As Usual people believe what they WANT to believe .... Would the Buillding Societies or Banks. or indeed any other party with a vested interest in property ever talk the market down ??? ofcourse not !! But With the U.S Sub prime problems still causing mayhem, Oil at near record levels & likely to stay there..The UK & US economies set to slow markedly nxt yr..What does that suggest to you ...??? Honestly ?? Trying to Bullsxxt People into thinking everything is Rosey (i.e Darling this aftrnoon) will only go so far in keeping a positive outlook... For some but by no means all..there are rough times ahead..as the longest Boom in nearly half a century begins to wind down !!..Time to tighten your belts guys & gals !

http://news.bbc.co.uk/1/hi/business/7085398.stm

My above post cuts through all the crud & gets to the bottom line of things....rather than the endless hair splitting & specualtion..this link yet another indication that I am right !! .....

tr3mor

pamaris wrote: »

Forgive me but whenever I see a post like this I am skeptical... it is all the things that priced out FTB's / property bears want to hear... not something we are accustomed to hearing from estate agents.

It does seem a little strange really. Although estate agents are suffering at the moment.

I know I'm being pedantic, but it's spelt "sceptical" in this country!

pamaris

tr3mor wrote: »

It does seem a little strange really. Although estate agents are suffering at the moment.

I know I'm being pedantic, but it's spelt "sceptical" in this country!

Oops I didn't realiZe that!

m00m00

There is nothing to be sceptical about regarding simon w's post.

his only other post on this forum, backs up what he's saying about his experience as an estate agent.

he makes a very valid point about most people thinking it's business as usual in housing.

dolce_vita

simon_w wrote: »

I am an estate agent of 27 years experience.
I connat remeber demand having slumped so quickly in just a matter of weeks, compounded by bad Press ie Northern Rock etc. In simple terms the market has stalled and selling prices are falling. Many homeowners and estate agents have not yet realised what is happening.
I saw this all in 87-92 when prices dropped 65%.
Smart homeowners will actually reduce prices now, rather than following the market down. I recall a property locally that we had on the market for 2.5 years in 1989. It stated at £350,000 and eventually sold for £189,000. The owners were always to late in reducing their price to its 'market value'.

Nice to hear it from the horse's mouth, so to speak.

And from a poster who has experienced a downturn and can read the same signals this time around.

You have been warned.

mrs_deadline

But remember prices don't drop uniformly for everyone because not everyone has to sell. Just now, I get the impression many of the properties sitting on Rightmove for months on end have just been "trying their luck" or getting in before HIP deadlines.

Come the crunch, anyone who has a choice not to sell, sits tight and waits for the upturn. But woe betide the others, they end up taking the full hit.

viddy

Ive just bought a house for 230k, i'd be horrfied :eek: if the house prices started going down where I live. I have not seen any downward trend in house prices probably because its the most sought after location in the town. I 'd think the first house prices to fall would be in the least sought areas. All these housing experts on tv saying that house prices are coming down and the recent northen rock crises dont help either. But if the banks make it tough to get a mortagage then house prices would have to come down i guess.

IveSeenTheLight

carolt wrote: »

If you want to paint that as a rosy picture, then feel free, and you are clearly one of the glass-half-full types, no matter what life throws at you, but I feel duty-bound to report what the paper actually says, rather than just the one not-quite-so-negative bit......

No I read the whole article.
I understand the negative and positive reports.
My post was just to balance out your original post which was only negative.

What people need to do is look at their specific area they live in and view the market there. Not all areas are affected the same, some will go down, some will stagnate, some will continue to rise albeit at a much slower rate.

There are too many genarlisations on here and many are not open minded to there being a split between house price crash, stagnation or continue increases.

What is to stop the area which are well overpriced, dropping, those which are about right price wise stagnated and those area which are still under priced continue a small increase?

m00m00

because in terms of income to house value, NOWHERE is undervalued.

undervalued relative to the unsustainable hyper inflation elsewhere, perhaps, but intrinsically under valued, no .