Does it matter if house prices fall?

seven-day-weekend

I don't think it matters unless you are selling and in no or negative equity.

I personally would love to see a big fall in prices in the UK, with a rise or remaining static in Spain, so that I can sell my Spanish home in two years time and buy one of a comparable size somewhere nice in England.

ginger_nuts

seven-day-weekend wrote: »

I don't think it matters unless you are selling and in no or negative equity.

I personally would love to see a big fall in prices in the UK, with a rise or remaining static in Spain, so that I can sell my Spanish home in two years time and buy one of a comparable size somewhere nice in England.

but if you have negative equity you will find it difficult to remortgage /find a better mortgage deal .

Jonbvn

seven-day-weekend wrote: »

I personally would love to see a big fall in prices in the UK, with a rise or remaining static in Spain, so that I can sell my Spanish home in two years time and buy one of a comparable size somewhere nice in England.

From what I have read I think this situation is very unlikely to happen. IMHO there will be falls in the UK, but even bigger falls in Spain, due to massive over-supply.

Sorry

brit1234

Jonbvn wrote: »

From what I have read I think this situation is very unlikely to happen. IMHO there will be falls in the UK, but even bigger falls in Spain, due to massive over-supply.

Sorry

There will be massive falls Spain like you said from the oversupply but I believe there will be massive falls here as well.

The reason we have a shortage of properties is not because of more people (well maybe a tiny bit) but because they have been increasingly bought up by investors. Year after year the percentage rose till they became the majority buying group. If it wasn't for this sector and the properties they took there wouldn't be a shortage. This can be seen by the floods of investors putting property on the market, suddenly there is massive supply.

sarkin

seven-day-weekend wrote: »

I don't think it matters unless you are selling and in no or negative equity.

I personally would love to see a big fall in prices in the UK, with a rise or remaining static in Spain, so that I can sell my Spanish home in two years time and buy one of a comparable size somewhere nice in England.

I think you will find that Spain is toast

Link for falling Spanish house prices

Generali

Given that about 4,000 people live in the Corporation of London (??? maybe it's 4000 flats, can't remember) I don't imagine enough places are bought and sold each month for a statistically valid sample.

Good news for me if it's true as I'd like to move back to the Barbican if poss.

TTMCMschine

HelzBelz wrote: »

Just a couple of thoughts on the article, most places it's the norm to put in an offer on a house rather than going straight for the asking price so maybe it's just that London is starting to play the property game the same as the rest of the country.
Also in the example of having 3 children and "needing" another bedroom it's really "wanting" as there isn't really any reason why 2 of the children couldn't share.

It might only be a two bedroomed house? Or one might need 24 hour care, and the other 2 are of the opposite sex, and too old to share.
Let's also just say over the last few years sellers have expected the asking prices on their properties, so they can afford to move up the ladder. This is everywhere - not just london (i live up north). I have friends who cannot afford to move up the ladder, and can't drop their price - or they won't be able buy their next place.
You are also mixng up how silling house prices have become, and confusing it with people being greedy because they want a bigger house. A few years ago most people could have moved up the housing ladder. Now most can't afford to do it. Even if the family do just want more bedrooms rather than need - why is this a problem to you? It's perfectly normal to get a bigger and better house as time goes on.

boinging_2

TTMCMschine wrote: »

I have friends who cannot afford to move up the ladder, and can't drop their price - or they won't be able buy their next place.
.

Why are the houses on the next rung up the ladder not being affected by falling prices?

Jonbvn

brit1234 wrote: »

This can be seen by the floods of investors putting property on the market, suddenly there is massive supply.

Don't think the UK will be close to the scale of the crash in Spain. From the article linked above:

Spanish construction companies built 750,000 houses and apartments last year, more than France and Germany combined, while annual demand is running about 60 percent of that level, according to the Finance Ministry.

From another site:
http://www.spanishpropertyinsight.com/propertydispatches/?p=7

Firstly, the property boom of the last decade triggered a building frenzy that has lead to a glut of properties, especially on the coast. New homes have been built at a rate of between 500,000 and 700,000 per year since the start of the decade, compared to around 200,000 per year in the UK. One leading Spanish savings bank estimates that up to 500,000 newly built properties remain unsold. As the downturn evolves, planning approvals are falling fast.

seven-day-weekend

Jonbvn wrote: »

From what I have read I think this situation is very unlikely to happen. IMHO there will be falls in the UK, but even bigger falls in Spain, due to massive over-supply.

Sorry

Yes I know that is likely - my traditional village house in the mountains however isn't quite as prone to the vagaries in the market as a new apartment on the coast, and we already have a good profit on it if other houses that have sold here are anything to go by.

We have 100% equity in it, so one can hope.