House prices will plummet 10 percent

harryhound

How ever did we get in this mess? I seem to remember working 5 and a half days a week for 15 GBP and paying taxes when I was a teenager. Never been out of work either?
Now I see a nation of young people who live on loans until they are about 25 and then get well paid jobs and jet off on exotic holidays to tsunami country, rather than paying off the debts we all lent them at special subsidised rates.
Life is soooo unfair !!
(for the 1.3 billion living on a dollar a day).

Running_Horse

btloptingout wrote: »

You don't have to be in a "property" profession to suffer from Gordon 'Prudence' Browns "no more boom and bust".....Do you think all the people in the queue are any different from you?

I lost my job in 2005 when the property market was booming. I went out and got another one. House price slumps do not cause mass unemployment. Mass unemployment on the other hand, does cause house price slumps.

[Deleted User]

well OP you don`t know what you are talking about. Several sold boards have gone up around here in the past few weeks

Come early spring there will be a mad scramble for houses. Small apartments in town centre/bay blocks won`t sell so easily though

budget_counsellor_shaz

IveSeenTheLight wrote: »

What's it got to do with when you were born?
Sure its hard, sure its expensive, sure you need a big deposit.
Now go and speak to your parents and grand parents and ask them how easy was it to get a mortgage for their own home. Also ask them when they bought their first property.
You'll find that this generation is not much different from previous generations.

The problem is that it appears that it has been easy for the last 15 years to get a property because it was just after the last house price correction, mortgages were easy to come by in fact financial institutions were throwing it at you.
This is not the norm, yes people have been very furtunate in this period, but again I ask to you speak to older generations who probably found it just as hard as people today to get on the property ladder.

Did they moan about it, I doubt it, they would have just got on with it and did the best they could

I'm sorry I don't agree. I bought my first house in 1983 for £21 000 and saved £3 000 as a deposit. It was a 3 bedroom semi detatched with a garage and a fair sized garden in the south east. A lot of my friends also bought a house. I was earning (at the time) below the median average wage at the time.:rolleyes:

This is not the situation for my children they would struggle to afford a 1 bedroom flat!!!!!!

You were lucky to have had the opportunity.......this generation of 20 - 30's do not have the same opportunities my generation had

neverdespairgirl

IveSeenTheLight wrote: »

What's it got to do with when you were born?
Sure its hard, sure its expensive, sure you need a big deposit.
Now go and speak to your parents and grand parents and ask them how easy was it to get a mortgage for their own home. Also ask them when they bought their first property.
You'll find that this generation is not much different from previous generations.

My parents bought a 3 bed flat when they married, aged 25 and 27, and a 4 bed house just before their first child (me) was born. They could easily afford the mortgage on the 4 bed house with only my Dad working, in 1977.

I'm 30, both my partner and I are working in the same jobs as my Dad was then, and we couldn't afford the mortgage on a similar 4 bed house now.

carolt

Running_Horse wrote: »

I lost my job in 2005 when the property market was booming. I went out and got another one. House price slumps do not cause mass unemployment. Mass unemployment on the other hand, does cause house price slumps.

Surely you can't believe that, Running Horse? Of course house price slumps cause unemployment? For example:

1. At the moment, a large number of companies have reported profit warnings in the last few weeks, Moss Bros being the latest this morning, various upmarket food chains earlier this week etc - as consumer confidence - and the amount people are prepared to spend on other, unnecessary luxuries, shrinks. Falling house prices affects consumer confidence hugely - think how many people have been remortgaging in line with higher house prices over the last few years to spend on cars, holidays etc etc. Further down the line, this definitely translates into job losses across the board.

2. History shows you are wrong - in the last UK crash, unemployment took off AFTER the crash, not before.

3. (Apologise for the capitals, but feel the need to shout this to the world!) ONE OF THE 10+ LOCAL ESTATE AGENTS IN THE NEXT 'TOWN' IE VILLAGE WITH ONE SMALL HIGH STREET HAS GONE BUST! PASSED IT YESTERDAY AND IT'S ALL BOARDED UP AND SIGN TAKEN DOWN! 1 DOWN, HOW MANY MORE TO GO????

Anyone else got local estate agents gone bust yet? Obviously, they're on the frontline and are going to be the first to lose their jobs in a stagnant market. Now I think of it, I can't remember when I last saw a house in my local area with a 'Sold' sign from them (or even a for sale sign). But the numbers of local estate agents have grown so astronomically over the last few years it will be a blessed relief to have some shops free to actually sell things (other than over-priced houses) again......

carolt

Also, no point in arguing with I've seen the Light on whether it was just as hard (or easy) to buy in our parents' time - this has been done to death on other threads and he knows he lost the argument then, and is just trying to sneakily resurrect it for those who haven't seen earlier threads...

Either way, it is of little importance, as in the coming ...ooops, not allowed to use that word... um... 'correction', prices will correct to levels where ordinary first time buyers can once again afford to buy.

Today's 1.1% falls announced by the Halifax, if they continued for say 3 years, would bring properties back down to approachable levels (anyone care to do the maths?). So sit back and enjoy the ride....

WTF?_2

Running_Horse wrote: »

I'm not an estate agent or any of those other professions you mentioned, and not all of them will be unemployed. If I was, and if I lost my job, I'd go out and get another one doing something else.

You clearly don't know what a recession is actually like then. Have you lived through one before, as an adult?


Simply 'going out and getting another one' should you lose your job is easy in a climate of economic growth - quite a bit trickier when the economy hits the buffers. Yes, of course not everyone loses their job but just about everyone is in fear of losing their job because (a) it's quite possible that they will and (b) there aren't many other ones out there.


As explained by another poster, all this 'crystal ball gazing' is because things happening at the moment in the world of high finance are exactly the sorts of things that will have an effect on everyday people's lives when they filter down. And I don't think that it will take even 18 months .. things started to go downhill 'at the top' around six months or more ago and we're now seeing the first signs of house price drops, consumer confidence falls. retail sales falls etc. starting to creep in.


I can see that the results are going to cause quite a bit of, er, consternation amongst a large section of the population who have no idea what it's like to live in an economy that isn't growing healthily. Those who whine about house price crash threads here right now haven't seen anything compared to the flood of 'weeping and gnashing of teeth' posts about decimated house values, un-repayable debt and lost jobs that are going to be coming to these boards extremely soon.

Hereward

carolt wrote: »

3. (Apologise for the capitals, but feel the need to shout this to the world!) ONE OF THE 10+ LOCAL ESTATE AGENTS IN THE NEXT 'TOWN' IE VILLAGE WITH ONE SMALL HIGH STREET HAS GONE BUST! PASSED IT YESTERDAY AND IT'S ALL BOARDED UP AND SIGN TAKEN DOWN! 1 DOWN, HOW MANY MORE TO GO????

Anyone else got local estate agents gone bust yet? Obviously, they're on the frontline and are going to be the first to lose their jobs in a stagnant market. Now I think of it, I can't remember when I last saw a house in my local area with a 'Sold' sign from them (or even a for sale sign). But the numbers of local estate agents have grown so astronomically over the last few years it will be a blessed relief to have some shops free to actually sell things (other than over-priced houses) again......

An estate agency near me went bust last year. Does this mean that the market was falling at that point? No, their fees were more than the others and just couldn't get the houses.

As they say, one swallow doesn't make a summer.

geoffky

in our village we have 5 hairdresses 2 nails places 2 tanning salons and seven estate agents and last week two closed,but guess what we dont have a butchers or vegtables shop ,how pathetic is that,estate agents that closed had been there for 7 years and the other one longer than i can remember..bad time indeed.