House Price Crash Discussion Thread

cybermum

dolce_vita wrote: »

I firmly believe prices will be lower this time next year and if you can wait then you should.

Good luck to you whatever you decide to do.

Thanks
We are planning to wait.How much lower will they be?
Time will tell.
But as the saying goes 'fools rush in'
So we are sitting firm and watching this unfold.
We won't be buying for quite a while!

dolce_vita

cybermum wrote: »

The house choice may be limited ,but I guess that is the gamble we take

This is a common belief amongst many people but is, in fact, not true.

There will be plenty of houses to choose from during a crash.

purch

There will be plenty of houses to choose from during a crash.

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting post http://forums.moneysavingexpert.com/showpost.html?p=7348369"][/EMAIL]

Yes...

If the last decade is anything to go by, it was the period 1995 to 1997 when house prices stagnated where there was a supply shortage

dweeby

dolce_vita wrote: »

There will be plenty of houses to choose from during a crash.

What makes you say that?

Do you mean that as peoples mortgage payments rise after coming off fixed rates next year, they might have to sell?

I recall that during previous stagnations or periods of decrease, nobody wanted to move. Few people were prepared to sell their house for less than they thought it should be worth, only those who had to for some reason.

dolce_vita

And what if the house you want to buy suddenly becomes a lot cheaper and you see it as your only opportunity to trade up and have to get in quick.

And even though you might not be a forced seller, would you not price yours accordingly for a quick sale?

i.e. a lot cheaper?

And wouldn't that lower price be the new market value for similar houses?

dweeby

dolce_vita wrote: »

And even though you might not be a forced seller, would you not price yours accordingly for a quick sale?

Ok yes, fair enough... but my recollection (which could be wrong!) is that isn't what happened previously.

As I recall, it's the opposite. As prices rise, people sell up quickly and move before prices get higher. And they are able to sell quickly for the same reason.

If what you're suggesting is correct (and I'm not saying it isn't!), wouldn't the demand created put prices up again?

dolce_vita

dweeby wrote: »

If what you're suggesting is correct (and I'm not saying it isn't!), wouldn't the demand created put prices up again?

Not if there's less money going round.

Don't forget demnd is not the same as desire.

It is linked to ability to pay.

Turnbull2000

"The econmy is strong, no more boom and bust, low inflation, low interest rates, we'll weather the storm..."




Meanwhile...

None of the economic data published contained Christmas cheer for the Treasury. The credit squeeze has contributed to the worst public finance deficit EVER in the first eight months of the financial year; the first drop in new lending by banks and building societies for two years; almost no growth in money deposited in banks; a RECORD current account deficit; and economic growth generated in the main by consumers SPENDING BORROWED MONEY.

The most worrying figure for the government is the sudden and deep DETERIORATION in the public finances, brought about in the main by a shortfall of tax revenues.

Source: Financial Times

Does this man have no shame?

Turnbull2000

This is NOT satire

Mini Madness

Estate agents' minis are driving folk round the bend in Balham with residents saying they are unable to park because of the sheer number of them.

"It's more like Tooting Terror and Balham Bandit. I've seen up to ten minis before down one road and I've been forced to drive much further away to park, adding to carbon emissions."

"It drives me mad going up and down the road looking for a space when I have paid for a permit, only to see those hideously coloured minis taking all the spaces."

Romani_Ite_Domum

The cars, which mainly belong to employees from the Foxtons group, are often parked in the side streets behind the agents' offices in Balham High Road, restricting the number of spaces available for residents.

Why are they all back at the office? Why are they not out showing buyers around properties?

Ah yes just remembered.