House Price Crash Discussion Thread

Bargainhunter20

Apologies for not reading back through the 1k+ posts but as a First time buyer I am obviously intrigued to know if their is any truth behind a House price crash/rise?




J x

Generali

Bargainhunter20 wrote: »

Apologies for not reading back through the 1k+ posts but as a First time buyer I am obviously intrigued to know if their is any truth behind a House price crash/rise?




J x

That you have post 1575 in this thread should tell you that there is quite a lot of disagreement on the subject!

I reckon house prices will fall substantially from where they are now. WTFDIK though.

aztec21

Bargainhunter20 wrote: »

Apologies for not reading back through the 1k+ posts but as a First time buyer I am obviously intrigued to know if their is any truth behind a House price crash/rise?

J x

I think the word "crash" is a little strong. I prefer correction.

VFR-Rider

aztec21 wrote:

I think the word "crash" is a little strong. I prefer correction.

I agree with aztec21... however I think the main problem is we couldn't decide what crash meant! For me I personally am thinking (hoping?) for about -20% in 2-3 years...

What does "crash" mean to you?
-1% or -1% a month?
-5% or -5% in 6 months?
-10% or -10% a year?
-50% in 5 years? -50% in 10 years?

However if the rates fell for the next couple of years at >50% they rate they rose over the past few years, I think that would not be unreasonable.

lethal0r

crash to me says panic, people desperately trying to sell, few buyers, prices dropping like a middle-aged ladies breasts. I don't see a catalyst to make all this happen. I do believe there will be a slow correction to lower prices for a few years. like a 1% drop every few months.

Generali

lethal0r wrote: »

crash to me says panic, people desperately trying to sell, few buyers, prices dropping like a middle-aged ladies breasts. I don't see a catalyst to make all this happen. I do believe there will be a slow correction to lower prices for a few years. like a 1% drop every few months.

My feeling is that there is a pretty nasty recession around the corner as a result of the credit crunch on business investment and consumer spending. It's already happening in the US.

The key to house prices is what BTL investors do. That remains to be seen.

MissMoneypenny

lethal0r wrote: »

crash to me says panic, people desperately trying to sell, few buyers, prices dropping like a middle-aged ladies breasts.

And middlle-aged mens balls (why do you think the shorts they wear have to get longer).:D Got to keep it fair for both sexes.

MissMoneypenny

Generali wrote: »

My feeling is that there is a pretty nasty recession around the corner as a result of the credit crunch on business investment and consumer spending.

Mine too. Red alerts are showing a marked increase in an alarmingly short space of time.

van_persie

Generali wrote: »

My feeling is that there is a pretty nasty recession around the corner as a result of the credit crunch on business investment and consumer spending. It's already happening in the US.

The key to house prices is what BTL investors do. That remains to be seen.

Agree with effects of credit crunch but I feel the BTL investors don't hold the key to our crash/correction (whatever you want to call it!) - they may well speed it up by releasing more properties onto the market but IMHO the bubble has burst because the banks are tightening their criteria, at last. There is a disconnect between (falling) interest rates and (rising) mortgage rates now and banks are looking to lend only to those with healthy deposits, etc. Just like the good old days.
Lie-to-buy loans, 100% and even 125% deals that were so easy to come by are gone and the effect is being felt already. We are paying for years of mortgage fraud and greed. We're broke.The tide has gone out and the UK is the one swimming without its trunks on...

albacore1854

Bring on the recession, sounds harsh, but I firmly believe the country will be better for it.