House price fall "accelerating"

Romani_Ite_Domum

pinkshoes wrote: »

It says prices are falling, but less houses are actually selling.

That would indicate that those who HAVE to sell are having to accept a lower price due to credit crunch, higher interest rates, the fact that it's christmas/winter, and the unsure market, but others are obviously just not bothering to sell.

Given that there's no inclination that interest rates will rocket, maybe if prices DO drop significantly, every man and his dog will be out there trying to snap up all those properties where people HAVE to sell, while at the same time keeping their own property?!

That means that all those hoping to get on the housing ladder and snap up a bargain could be competing against experienced buyers in a market where there are very few properties for sale.

Falling prices with demand outstripping supply?. Things must be really bad right now.

motch

As you say pinkshoes this wont effect those with big equity in their houses. but I think will effect those mortgaged to the hilt, recent first time buyers, amateur BTL and subprime which is rising all the time.

boinging_2

scope wrote: »

Before they last went up... see a pattern?

Unless you just bought your first home (and have no or little equity in the house) I would not worry as the one you will be buying will also have gone down. With prices more than doubled over the last 6-7- years I think most people who have had their property for a while have nothing to worry about - even if they dropped by 50% we would be no worse off than we were 6-7 years ago.

Did you bother to read all my posts on this thread - I made exactly the same point about no difference if you are up sizing.

tr3mor

pinkshoes wrote: »

I'd rather pay more for a house that I want NOW, than have a cheaper one in a less desirable location tomorrow thanks!

Say you had a £200k budget. This budget will buy you a much nicer house in a better location post-crash than it will do now.

Microstar_2

This is very worrying for some people.

My sister is hoping to sell her investment flat in Leicester. She doesn't HAVE to sell, but it is not really financially viable any longer. Unfortunately potential BTL'ers seem to have deserted the market. There has been no interest in the flat at all in the last few months (and its a nice one in a premium area and offered at what she thought was a good price).
One problem is that so many developers have steamed into the market over the last few years that there is massive oversupply (at least in Leicester/shire) and not enough renters.

I think BTL has been propping up the bottom end of the market for a while and enabling the market to function, and now they are not buying its starting to look a bit grim...

PJD

pinkshoes wrote: »

Er... perhaps those that are buying a home rather than an investment, and those that have seen an ideal property in the ideal location on the market NOW, and those that don't have a crystal ball...

I'd rather pay more for a house that I want NOW, than have a cheaper one in a less desirable location tomorrow thanks!

Unless interest rates climb rapidly, I still think the market will stall rather than fall, and people will just stay put rather than sell.

For anyone who's taken out a mortgage and is being forced to sell for reposession, then that's their own fault for not doing their maths homework!! We were offered a mortgage at 5x our joint salary, but it didn't take much calculating to work out that we couldn't feasibly afford that and it was too risky!!

Errrrrrrrrrrrr............. good for you. I agree with you up to a point. Well possibly. Still might be worth waiting though. Of course many people would prefer to save £££thousands, and this snowball effect can cause the situation to snowball.

The truth is, - no-one knows what will happen to the housing market, with the exception of internet experts like yourself

PJD

tr3mor wrote: »

Say you had a £200k budget. This budget will buy you a much nicer house in a better location post-crash than it will do now.

No point reasoning with someone who is letting their personal circumstances influence every post they type.

pinkshoes

tr3mor wrote: »

Say you had a £200k budget. This budget will buy you a much nicer house in a better location post-crash than it will do now.

The whole thing depends on where you live. Where I live, most houses on the market seem to be in areas where I wouldn't particularly want to live, as there is a huge rental market due to 2 big universities, 3 hospitals, and industry that has lots of foreign workers who seem to prefer to rent as they only stay for a year, hence if I saw what I wanted and I could afford it, then I would buy it. i would NEVER overstretch myself, because that's just irresponsible.

I don't have a crystal ball, no one does, and I very much doubt a house in my street will come up again in the near future. I love having my own home, I finally feel settled, so life is too short to sit around waiting for something that MIGHT happen. Or might not.

What about all those people who could have bought say 3 or 4 years ago but decided to wait for the prices to drop? If you like renting and can stay for several years in the same property with no chance of being handed your notice, then that's fine, but it doesn't often work like that. I know exactly what that's like!!

If prices drop and for some reason I need to move, then instead of selling, I'll probably just rent my property out, and rent/buy elsewhere. Until now, I've never contemplated buying a 2nd property, but in the above case I would now consider it.

CB1979_2

PJD wrote: »

No point reasoning with someone who is letting their personal circumstances influence every post they type.

pretty much like everyone on here.

all the renters hoping for lower prices (let's just hope they have a deposit!!)

all the homeowners hoping for continuing increases/stabilisation.



I just hope the "bubble" lasts out another year so i can sell my flat and travel the world!! lol

btw seen no price reductions in Croydon/surrounding areas, seem to be pretty much the same £180-200kish for a decent 2 bed flat in a decent area of south croydon

dannyboycey

pinkshoes wrote: »

Er... perhaps those that are buying a home rather than an investment,

Home. Investment. Whatever. In my opinion, only a simpleton would knowingly buy something that they knew would be cheaper in a few months.... Unless for some reason they have absolutely no other option open to them.

I'm buying an LCD TV. I could get it now for £700. Or I could wait till after Christmas, when it'll be AT LEAST £100 cheaper. It's to watch TV on, it's not 'an investment'. Should I just buy it now for the hell of it?