Housing Market Downturn - Really?!

Dan:_4

pickledtink wrote: »

Yes indeed and isn't it a nice day today.
Now doesn't that cake look scrummy Dan?
Eat it all up and then show all the nice people that lovely basket you're making.

Yes it does look scrummy, many thanks pickledtink.

Dan:_4

Gonzo wrote: »

I think there's only one way to find out......

FIIIIGGGHHHTTTTTT!!!!!

Yeah, its Friday night after all - Bring it on! Can I have a beer first tho?:beer:

pickledtink

Dan: wrote: »

Rubbish! they have been saying prices are falling by 2.5% nationwide, which is incorrect.

Isn't.
Average.
Rises in London. Flatline SE. Drops of 4-5% elsewhere and so forth.

pickledtink

Dan: wrote: »

Yes it does look scrummy, many thanks pickledtink.

Welcome. * passes napkin to assist in wiping unsightly dribble from Dans manly chin *
Time for a nice game of Monopoly everybody!

No harm in that.
After all they're just little houses built out of plastic aren't they?

Gonzo

pickledtink wrote: »

Welcome. * passes napkin to assist in wiping unsightly dribble from Dans manly chin *
Time for a nice game of Monopoly everybody!

No harm in that.
After all they're just little houses built out of plastic aren't they?

Methinks the lady doth protest too much

I think she may be sweet on you Dan

(Coquettish giggle!)

Paul_N_4

Dan: wrote: »

If people sit tight over the next few months, and let the credit crunch pass, everything will stay the same.

Who exactly is going to bother putting off selling their house though?

The only people that wouldn't want to sell right now (excluding forced sellers) are those that bought within the last couple of years (to live in or for investment) on high LTVs. You could say those looking to emigrate, but I doubt these people will put there plans on hold until the market sorts itself out. It could take years.

The fact is the overwhelming majority of home owners have high equity in their homes and will simply move from house that's fallen in value to next house that's fallen in value. And don't forget its a great time for anyone looking to upsize because they'll be the ones who make some of the best savings.

Dan:_4

Paul_N wrote: »

Who exactly is going to bother putting off selling their house though?

The only people that wouldn't want to sell right now (excluding forced sellers) are those that bought within the last couple of years (to live in or for investment) on high LTVs. You could say those looking to emigrate, but I doubt these people will put there plans on hold until the market sorts itself out. It could take years.

The fact is the overwhelming majority of home owners have high equity in their homes and will simply move from house that's fallen in value to next house that's fallen in value. And don't forget its a great time for anyone looking to upsize because they'll be the ones who make some of the best savings.

I agree with you. My point was that the public are easily led by the media and will just panic sell thinking they are doing the right thing, causing prices to fall further. I would not expect anyone to put their life on hold beacuse of these recent events, but if you dont need to sell right now then just to sit tight is the best thing to do.

m00m00

people don't grasp what's happening with this credit crunch

things will never return to the way they were a couple of years ago, the glut of global easy credit was the blip in the system, not the norm. What we are returning to is a system more like normality. The days of 100%+ 6x mortgages are unlikely to return. People are actually going to have to think about the consequences of borrowing money going forward. What effect this is going to have on consumer psychology no one can predict.

Dan:_4

m00m00 wrote: »

people don't grasp what's happening with this credit crunch

things will never return to the way they were a couple of years ago, the glut of global easy credit was the blip in the system, not the norm. What we are returning to is a system more like normality. The days of 100%+ 6x mortgages are unlikely to return. People are actually going to have to think about the consequences of borrowing money going forward. What effect this is going to have on consumer psychology no one can predict.

In a few years all this will be forgotten about and the days of 100% and 6x mortgages will be back, and so will 10-15% YoY rises, because banks are greedy and only think about profits. In the next few years prices will fall a bit, and rise a bit but maintain the current level overall because the government and lenders cannot/will not allow a massive crash. and will do anything within their power to stop it from happening.

Turnbull2000

Dan: wrote: »

In a few years all this will be forgotten about and the days of 100% and 6x mortgages will be back, and so will 10-15% YoY rises, because banks are greedy and only think about profits. In the next few years prices will fall a bit, and rise a bit but maintain the current level overall because the government and lenders cannot/will not allow a massive crash.

:rotfl:


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