House Price Crash Discussion Thread

boinging_2

It's a bit like a religious conflict on here.

The basic point is this, house prices have risen dramatically over the last 10 years and a lot of people did well out of this. Fair play, it's a dog eat dog world and watching something you have a financial interest in rise in value was fantastic.

However, as with all things in life "it will pass", so now prices are falling and that same interest is losing money and others are benefiting. That's life.

No one can predict what will happen but for winners there are always losers it's just in this case it would appear they are switching places. No doubt in a couple of years or so prices will begin to rise again and we all dance round again.

WTF?_2

Turnbull2000 wrote: »

During the last crash, half of total price falls had occured before unempoyment went north. In Ireland and the US - both of which have already double digit falls - unemployment remains steady.

House prices rises ahead of earnings are unsustainable and a symtom of economic failure. It's this economic failure in the form of excess borrowing, excess debt, energy and food inflation, currency devaluation and credit tightening that will trigger unemployment.

Even if house price falls did directly affect employment levels, it would just go to prove that the economy is more f*cked up than you could ever imagine and will go pete tong anyway. Personally, I'm willing to go through a period unemployment if it means a brighter future afterwards. Why should I care about others when nobody gave a damn about my plight when all was supposedly good?

Yes - the US housing market went into meltdown a good 9-12 months before economic growth seriously fell.

It's more than likely that the house market 'correcting' will be a major driver for recession in the UK, not the other way around;

* Billions of pounds have been pumped into the massive retail sector from MEWing ... that is gone. That will hit retailers hard all on it's own.

* People faced with much higher mortgage repayments when they come off their fixes and can't get another one due to not enough equity in their house will cut back on spending to pay the mortgage. More retail misery.

* The tightening of general lending conditions caused by the housing bubble in the US collapsing is hitting businesses who need to borrow.

* The banks who fuelled the house buying boom with their reckless loans will be cutting back bigtime on jobs - hurting the lucrative financial services sector.

That all adds up to recession in my opinion.

And all caused by an absolutely crazy boom in house prices. Those cheering on house price inflation and blaming all the problems on the inevitable bursting of the bubble are either hyprocritical, ignorant or just plain stupid. (Judging from most of the HPI cheerleaders posting on this board, equal parts of all three and in very large amounts.)

WTF?_2

chucky wrote: »

!!!!!!? please take your attacks on people to Personal Messages please.
You're extremely boring now - everyone has aired their personal views and now it's dead.

Leave it alone, let go - you don't need to impress anyone on here!!

Back to the topic - in Central London as far as 1 beds are concerned, Sellers are maintaining there asking prices and discounting by very little. There are definately properties that are dropping in value but these properties that aren't great for whatever reason. 'Good' properties seem to be going for asking price or very close, however they seem to be taking slightly longer to sell.

Good grief - as usual, the substantive points I made about how HPI is the cause of all this trouble completely ignored in favour of a shouty, personal attack.


Are you rabid HPI cheerleaders capable of actually debating using points or is spouting off a bile-infused string of invective the limit of your debating powers?

(Rhetorical question, obviously )

Generali

!!!!!!? wrote: »

Good grief - as usual, the substantive points I made about how HPI is the cause of all this trouble completely ignored in favour of a shouty, personal attack.


Are you rabid HPI cheerleaders capable of actually debating using points or is spouting off a bile-infused string of invective the limit of your debating powers?

(Rhetorical question, obviously )

The same could be said of an increasing proportion of threads on here and quite frankly, it's getting boring.

pickledtink

carolt wrote: »

Troll alert.....

You picking on my poor namesake again you horrid, nasty, cruel baby eating creature carolt?

Well at least now it's been outed it'll hopefully disappear back under its bridge and I'll only be blamed for my own daft posts again.

oranger

Stop bickering!

Watch this instead - it'll cheer you up!

WTF?_2

chucky wrote: »

Not bile infused at all - i gave my personal experience.

You haven't addressed any points made and your sole contribution other than abuse has been a blithe anecdotal of what you percieve happening in your local area :rolleyes:

chucky wrote: »

obviously you telling someone - "As for the rest of your invective-filled post, Pickledpink, it is down to your usual low standards of baiting, vilifying, childish name calling and downright nastiness." must be ok... :T

That's just an honest appraisal of her quite frankly disgraceful post.

To quote the parts of the post I was referring to, which lead me to make my condemnation of her nasty post:

I bet she's the type who would definitely gloat if she managed to get on the property ladder - and I think that's where her nastiness stems from - she's jealous cos she's never made a buck out of property -except for imaginery figures
..
Vile woman
..
People like her only come on these sites to cause unhappiness and discontent. She's trying to talk the market down - just to line her own pockets! What a hypocrite!


In my book that is a nasty bit of vile-filled invective and a disgusting personal attack. It deserves to be condemned in no uncertain terms.

Now, maybe you think it's OK to come out with that and not worthy of comment - well you have your expectation of standards of debate and I have mine I guess.

WTF?_2

chucky wrote: »

!!!!!!? wrote: »

You haven't addressed any points made and your sole contribution other than abuse has been a blithe anecdotal of what you percieve happening in your local area :rolleyes: quote]

I see... so describing (not perceiving, as I am currently buying a property in my local area...) is not allowed on this thread...

Of course it's allowed - but don't be surprised when it gets picked up on as not a particularly sound rebuttal of points raised.

But then again, points raised often contain things like links to evidence or articles supporting those points which you've already showed your disdain for:

the trolls are the ones that put out links to The Guardian and The Times on house price crashes on individual threads to emphasise their point and make themselves look 'intelligent'.


So I guess there's not a lot of point citing actual evidence of what is going on in the wider market to you when you can just take a quick look around your locality and decide that the market is in rude health. :rolleyes:

guidarufino

Turnbull2000 wrote: »

Check out the BBC Your Say page - typically a reasonable indicator of current public sentiment. The most populalar view is that a drop in prices is a good thing.

Associating price drops with "doom and gloom" is the real scaremongering, and it's now sounding quite tiresome.

Well that depends on your point of view doesn't it? As with most things, there will be winners and losers in all situations. A modest drop in house prices would probably be a good thing on balance, though obviously there are some people for whom this would be a complete disaster. Though I have limited sympathy (ie none!) for people who have remortgaged on the strength of increasing house prices simply to fund lavish lifestyles. My point, which I may not have expressed clearly, was that a housing crash such as that of the 90s, would be disastrous for the economy as a whole though a modest drop to make house prices more realistic would probably not be a bad thing. People simply need to readjust their expectations of relying on their house to increase in value as they have in the past.

pickledtink

!!!!!!? wrote: »

Yes - the US housing market went into meltdown a good 9-12 months before economic growth seriously fell.

It's more than likely that the house market 'correcting' will be a major driver for recession in the UK, not the other way around;

* Billions of pounds have been pumped into the massive retail sector from MEWing ... that is gone. That will hit retailers hard all on it's own.

* People faced with much higher mortgage repayments when they come off their fixes and can't get another one due to not enough equity in their house will cut back on spending to pay the mortgage. More retail misery.

* The tightening of general lending conditions caused by the housing bubble in the US collapsing is hitting businesses who need to borrow.

* The banks who fuelled the house buying boom with their reckless loans will be cutting back bigtime on jobs - hurting the lucrative financial services sector.

That all adds up to recession in my opinion.

And all caused by an absolutely crazy boom in house prices. Those cheering on house price inflation and blaming all the problems on the inevitable bursting of the bubble are either hyprocritical, ignorant or just plain stupid. (Judging from most of the HPI cheerleaders posting on this board, equal parts of all three and in very large amounts.)

Although I'd agree on the whole with all you say there are other factors involved IMO.
The US sub prime crash had a knock on effect here as well. Also ours is not the only economy feeling the pinch which can't be laid at the door of the UK housing boom only.
Just not enough actual money to go round right now so nobody's buying.