The press on housing falls

baby_boomer

Always a laugh for ridiculous hyperbole.

From Thursday's Times

The housing market will face two years of blight

Prices are set to fall by as much as 4% :eek: in the West Midlands. (Poor things.. How will they ever cope :rolleyes: ?

There will also be sharp drops (presumbably of less than 4% :rotfl: in the East Midlands, the SW & NI according to Experian.

However London is tipped to buck the trend with a 6% rise.

So where, exactly is the "blight" :rotfl: :rotfl: :rotfl: especially in the context of such significant rises of late?

boinging_2

4% is no small change. Scenario:

Buy today - 400K
Stamp Duty - 12K

House worth 16K less in 1 year, so plus the 12K stamp duty a total of 28K cost for me if I sold in 1 year.

jonewer

In truth the greatest decrease in house prices ever was in the early 80s when prices dropped from around £60k to around £50K.

Thats a drop of only 17%.

olly300

boinging wrote: »

House worth 16K less in 1 year, so plus the 12K stamp duty a total of 28K cost for me if I sold in 1 year.

Why would you buy a house to live in for one year? Not very MSE.

hearts

According to some statistic today house prices dropped by 0.4% last month. A drop for the second month running. Reducing house price rise to 8.6% per anum or something like that. So basically prices falling but still rising ;-)

merlinthehappypig

jonewer wrote: »

In truth the greatest decrease in house prices ever was in the early 80s when prices dropped from around £60k to around £50K.

Thats a drop of only 17%.

The end of the 80's/early 90's was much worse than that. Our house for sale in 1989 was originally on at £85000 and we ended up having to take £55000. The house we bought in Suffolk in 1990 was on at £117000 originally and we paid £73000.

dolce_vita

jonewer wrote: »

In truth the greatest decrease in house prices ever was in the early 80s when prices dropped from around £60k to around £50K.

Thats a drop of only 17%.

I don't have any stats. to hand and can't be bothered to look but I know from experience that this is not correct.

Romani_Ite_Domum

Oh how times change.

We no longer talk about how much they go up or even how they will level off. We can now discuss how much they are falling.

Tipping point was August 07. Buckle up your seat belts, stow away any loose articles. We are on our way. Whoohooooo.

nelly_2

jonewer

dolce_vita wrote: »

I don't have any stats. to hand and can't be bothered to look but I know from experience that this is not correct.

Sorry, I meant late 80s/early 90s.

Prices peaked in Q3 1989 at £62,782 and bottomed out in Q4 of 1992 at £50,168

According to nationwide

http://www.nationwide.co.uk/hpi/downloads/UK_house_price_since_1952.xls

Gorgeous_George

Just proves that there are statsitics, statistics and damned lies. Prices fell much more than that in the late 80's/early 90's. Mine by about 30%.

As for recent falls, they are hardly exceptional considering it is November. Hardly a popular time of year to be moving house.

THE real falls haven't got here yet. Maybe the bottom of the market will be when prices reach 1995 levels (adjusted for inflation).

GG