House Price Crash Discussion Thread

otter1_2

So, I'm hoping to buy somewhere, because we are fed up with the size of our current flat and I get a very insecure 'temporary' feeling about rental accommodation. We've been looking since August, but in the past six weeks I've hung back, as not much is coming on the market, what with Christmas, and because of all this credit crunch hooha.

Anyway, Rightmove and Findaproperty have been sending me about 1-2 properties a day for the area I'm interested in. Today, all of a sudden, there are 60-odd! Overnight! Not quite sure what's going on there - can only think they've been given a kicking by their managers/the vendors and told to get as much as possible on for people to look at on their home computers over the festive period.

The reason for putting this info on this thread is to note that I recognise nearly all of these 'new' properties (and it's pretty obvious none of them are new to market because none of them are offering HIP info). From memory, they're showing drops of 5%-10% on previous asking price. Might not sound like much, but I'm looking at flats that are dropping £20k-£50k, and these aren't sale prices, they're asking prices. I'd expect sale prices to show an even bigger reduction in today's market.

As I'm looking for a home, not an investment, I'm getting quite excited, as it looks like I'm going to be able to get something much bigger than I had originally thought.

WTF?_2

otter1 wrote: »

So, I'm hoping to buy somewhere, because we are fed up with the size of our current flat and I get a very insecure 'temporary' feeling about rental accommodation. We've been looking since August, but in the past six weeks I've hung back, as not much is coming on the market, what with Christmas, and because of all this credit crunch hooha.

Anyway, Rightmove and Findaproperty have been sending me about 1-2 properties a day for the area I'm interested in. Today, all of a sudden, there are 60-odd! Overnight! Not quite sure what's going on there - can only think they've been given a kicking by their managers/the vendors and told to get as much as possible on for people to look at on their home computers over the festive period.

The reason for putting this info on this thread is to note that I recognise nearly all of these 'new' properties (and it's pretty obvious none of them are new to market because none of them are offering HIP info). From memory, they're showing drops of 5%-10% on previous asking price. Might not sound like much, but I'm looking at flats that are dropping £20k-£50k, and these aren't sale prices, they're asking prices. I'd expect sale prices to show an even bigger reduction in today's market.

As I'm looking for a home, not an investment, I'm getting quite excited, as it looks like I'm going to be able to get something much bigger than I had originally thought.

Great idea! Buy immediately after the peak just when prices first start to fall.

otter1_2

Um, I've just said I'm looking for a home and I would have thought that implies I don't give a stuff about negative equity. I imagine I may need to move to somewhere different in about ten years, but when that happens, I will look at what I can afford in the market and decide whether location priorities are as important as size of accommodation priorities.

I'm just pleased that the further prices drop, the more I'll be able to get for my money! Never said anything about when I intend to finally get somewhere.

Seems to me like you don't want anyone to buy anything anytime. There's no right or wrong time, provided you are looking for a home, not an investment.

m00m00

otter is absolutely right

if you are buying a 'home' get a good deal on a mortgage (either a decent fix or tracker) for a decent length of time, then things like negative equity just don't matter that much.

WTF?_2

otter1 wrote: »

Um, I've just said I'm looking for a home and I would have thought that implies I don't give a stuff about negative equity. I imagine I may need to move to somewhere different in about ten years, but when that happens, I will look at what I can afford in the market and decide whether location priorities are as important as size of accommodation priorities.

I'm just pleased that the further prices drop, the more I'll be able to get for my money! Never said anything about when I intend to finally get somewhere.

Seems to me like you don't want anyone to buy anything anytime. There's no right or wrong time, provided you are looking for a home, not an investment.

Not at all - just seemed from the tone of your post that you were pondering buying in the immediate future. It'll take at least a couple of years for the crash to play out. Massive overnight falls are unlikely.

You're quite right to look forward to getting more for your money or paying less for what you want - just be aware that if you're planning on borrowing a large part of the new value of the potential house to do this it might not be as simple as all that.

If you buy when things are on the way down you do risk negative equity and whether or not you personally give a stuff about it, you might have to if you find your circumstances changing. Time your purchase well - there'll probably be a long period of stagnant prices at the bottom and that would be the time to buy.

otter1_2

Thanks m00m00.

As it happens, I'm a naturally cautious type who has been looking at 10-year+ fixed deals. I'm not interested in playing games with guessing about interest rates or house prices. I just want to live somewhere bigger than my current poky one-bedroom within easy reach of where I work. I avoid this thread on the whole because there's rather too much schadenfreude going on, but I thought my anecdotal evidence of a notable change in my local market might be of interest. Wasn't expecting a sarcastic response about me being an idiot for wanting to buy when the market is practically at its peak. If I do want to do that, that's my own business, and I don't need to be told I'm a fool, because I'm going into it with my eyes open.

otter1_2

!!!!!!? - If I was 100% LTV, I'd be questioning whether I was in a position to buy anywhere in the first place. I hate all that speculation on what you hope your property might realise later on - seems like lenders and buyers who go in for that sort of thing are right chancers who then expect to be bailed out by those who acted more rationally and sensibly.

I have a relatively low LTV ratio, and am accordingly hopeful of getting a decent mortgage deal, even if they really tighten up on who they will lend to.

DreamBreaker

dolce_vita wrote: »

Fvck me.

It's taken 95 posts for you to say somehting half sensible.

Well done.

Keep taking the medication and happy christmas.

1-0 then to me, when is it your turn to post a sensible one

DreamBreaker

mr.broderick wrote: »

2008 even

PMSL lol, yeah that too hehe

DreamBreaker

otter1 wrote: »

Thanks m00m00.

As it happens, I'm a naturally cautious type who has been looking at 10-year+ fixed deals. I'm not interested in playing games with guessing about interest rates or house prices. I just want to live somewhere bigger than my current poky one-bedroom within easy reach of where I work. I avoid this thread on the whole because there's rather too much schadenfreude going on, but I thought my anecdotal evidence of a notable change in my local market might be of interest. Wasn't expecting a sarcastic response about me being an idiot for wanting to buy when the market is practically at its peak. If I do want to do that, that's my own business, and I don't need to be told I'm a fool, because I'm going into it with my eyes open.

This is a joking sarcastic comment in no way ment to offend you I just had to say if you have been watching this thread and seen some of the comments made by people then you should have known that your post would have got a sarcastic comment!

Keep looking for that good deal, I agree with what you said if it is a home your after then it does not really matter when you buy, just make sure you can easily afford it, though I am sure you will do Good Luck!:beer: