House prices continue to fall (Hometrack Report)

river_kwai

Hometrack reports SUMMER LULL TAKES ITS TOLL ON SLUGGISH MARKET
Fall of -0.2% continues year-long downwards trend


See the full report.
http://www.hometrack.co.uk/index.cfm?fuseaction=news.viewnewsitem&newsid=109

DrStep

So you re saying that if I waited for 13 months I could have saved an average 6.4K on a house purchase???

That could mean paying nearly 1 year of the mortgage, and being back where you started. Why overstrectch yourself if things are getting cheaper?

Woby_Tide

DrStep wrote:

That could mean paying nearly 1 year of the mortgage, and being back where you started.

You wouldn't be back where you started though, you'd only have 24 years left on a typical 25 year mortgage and part of the capital would have been repaid.

DilbertJones

If you are buying a house to make a quick buck, then now might not be the right time, but if you are purchasing a home, that you are going to be in for the long term, then there's always a good time. Think long term not short term people.

The days of property tycoons are gone (For now)

WHA

robodan wrote:

but if you are purchasing a home, that you are going to be in for the long term, then there's always a good time.

As long as you're absolutely certain you won't have to move in the next few years, i.e. job relocation, more children needing bigger house, moving to be closer to relatives, etc.

In the last property recession a lot of the negative equity problem was caused by unforeseen influences like these. I certainly knew a fair number of people who were "trapped" because they couldn't sell - their mortgage was higher than the house value.

Personally, I wouldn't buy a house 'now' regardless of whether it was long or short term - the risks are too great. Few, if any, people actually think property will increase in value over the next year or two. Most think there will be a "correction" of 5-10%, and some think there will be a major crash. On balance, I think we've passed the height and are heading downhill. My advice is now is for FTBs to wait and see for a few months.

Even if you're already on the property ladder it makes sense to wait. Sure, your house may fall, but so will the ones you are thinking of buyer - theirs will fall by more in "numbers" so you'll have to pay less of an increase.

meanmachine_2

It comes to something when even the most positive of reports claims that house prices will "only" fall by 5%.

I'm a FTBer and I'm not going anywhere near property for the time being. Happy to be free of a mortgage and saving my pennies.

Woby_Tide

meanmachine wrote:

I'm a FTBer and I'm not going anywhere near property for the time being. Happy to be free of a mortgage and saving my pennies.

yet you're a prolific poster on a "House buying and selling" forum....curiouser and curiouser said Alice........;)

wibble68_2

meanmachine wrote:

It comes to something when even the most positive of reports claims that house prices will "only" fall by 5%.

I'm a FTBer and I'm not going anywhere near property for the time being. Happy to be free of a mortgage and saving my pennies.

I think the next 3-5 years will be a more fruitful time for people who are renting/living with olds.

The notion that house prices can only go up is ridiculous.

But I'm afraid it's a popular myth amoungst house owners.

One guy who I work with tried to convince me that his house would be
worth 20% more this time next year. (He is barking though)

If you're not on the ladder and you have no real need to jump in, then play the waiting game.

Pheno

wibble68 wrote:

The notion that house prices can only go up is ridiculous.

In the long run they are pretty much guaranteed to go up. But as John Maynard Keynes said, in the long run we're all dead! I wouldn't be suprised if they go down for the next 15 years as they have in Japan.

Meanwhile, shares, which in a similar way are 'guaranteed to go up in the long run', are flying..

DrStep

Woby_Tide wrote:

You wouldn't be back where you started though, you'd only have 24 years left on a typical 25 year mortgage and part of the capital would have been repaid.

My main point is "Why overstrectch yourself if things are getting cheaper?"

I say not to buy, even now, but to wait - as renting is cheaper than buying.

Whats better 25 years of high mortgage repayments? Or by waiting and saving a larger deposit and have a smaller mortgage over say 25 years? (with room for overpayments) I know what I d choose.

nelly_2

DrStep wrote:

My main point is "Why overstrectch yourself if things are getting cheaper?"

I say not to buy, even now, but to wait - as renting is cheaper than buying.

Whats better 25 years of high mortgage repayments? Or by waiting and saving a larger deposit and have a smaller mortgage over say 25 years? (with room for overpayments) I know what I d choose.

Yep option B for me too, and everybody I know.

Just ask anyone selling their house if they themselves would pay the price their asking they all say "well its different now and things have gone up and blah and blah blah and in the end they all say "NO I WOULD'NT "