Guy at work.. Should i tell him?

wriggly

neas wrote: »

Want some stats? Every day i check changes on rightmove.. every day 10 new houses reducin their prices by 5k+ nobody is increasing their prices... :P

dateevent18th Mar 2008

• Price changed: from '£174,950' to '£169,995'
• Title changed: from 'Plymouth, Devon' to 'Widewell, Plymouth'

snipped... (You may have seen the rest )

What I don't understand is how HPC'ers continually rubbish the use of asking prices when it is used to establish prices in an area (or when said asking prices show a rise), but quite happily resort to propertysnake/bee to prove beyond a shadow of a doubt that house prices are going down.

neas

wriggly wrote: »

snipped... (You may have seen the rest )

What I don't understand is how HPC'ers continually rubbish the use of asking prices when it is used to establish prices in an area (or when said asking prices show a rise), but quite happily resort to propertysnake/bee to prove beyond a shadow of a doubt that house prices are going down.

I guess the idea is to show that more and more people are resorting to reducing their prices?

I.e its been on the market so long that they are starting to chase the market down... by reducing the price. If more and more houses start getting reduced for increasng reductions then isnt this a house price crash?

Jorgan_2

neas wrote: »

I guess the idea is to show that more and more people are resorting to reducing their prices?

neas wrote: »

I.e its been on the market so long that they are starting to chase the market down... by reducing the price. If more and more houses start getting reduced for increasng reductions then isnt this a house price crash?

Property Bee only shows that asking prices in some cases are being reduced, it has no bearing on the achived sale price. If you want evidence of a house price crash can I suggest you study the Inland Revenue figures of achieved prices over a given time.

Even that information isn't 100% reliable as you don't always know if you are comparing like with like. Just because two three bedroom semi's have sold in the same street for a difference of £10k, you have no idea on the condition of each property was.

One question I always want to ask someone wanting house prices to crash, is 'when do you know the time is right to buy a property?'

Markyt

neas wrote: »

If more and more houses start getting reduced for increasng reductions then isnt this a house price crash?

If the formula were that simple, you'd be an economist.

Lotus-eater

Jorgan wrote: »

One question I always want to ask someone wanting house prices to crash, is 'when do you know the time is right to buy a property?'

OK, I'll have a stab at it............ what about "when you don't give a toss if the price of the house will go down or up (but then expect it to be at least the same value in ten years)"?

Doozergirl

Lotus-eater wrote: »

OK, I'll have a stab at it............ what about "when you don't give a toss if the price of the house will go down or up (but then expect it to be at least the same value in ten years)"?

Something tells me that the sheer verocity of some of these people means they would be incapable of 'not giving a toss' about house prices. If they fell far enough I suspect many of those who would look upon current property investors with disdain, would just as equally jump in with both feet given the correct climate. If they had big enough (crystal ) balls

Rick62

Neas, what do you want to tell this guy? He already has the property, he is tied in to the mortgage for another year, all the major papers are now running front page stories suggesting property could fall 20% over the next 2 years (about right as an average, IMO). Its non of your business unless he asks you and he's a bit stuck now anyway. Also if he chooses to ignore all the headlines them I'm sure he'll ignore you too.

Its a sad fact that if prices do fall by 20% plus over the next 2 years then loads of FTB and BTL buyers are going to get hurt, some very badly. This is the flip side of runaway increases for 10 years, who was bothered then?

The politicians, BOE, FSA and media have let everyone down, with make believe that we could all make money from holding property rather than working for it, some people have gained, some a lot, but its a zero sum game, so now a lot are going to lose.

neas

When houses dont cost my first right arm or my first born... then i'll be content eh?

7x average salary for a !!!! house... really seems appropriate :P. maybe if houses were 5x average salary i'd be happy.. obv i'd like 3.5 but that anit gonna happen for a long while.

Pobby

BallandChain wrote: »

Good grief, he didn't even have the money for a deposit and talks of a BTL. What are the lenders thinking offering him a mortgage when he's not even earning! It sounds as if he's trying to be a financial whizzkid but it ain't happening. I feel sorry for the partner, though I suspect she/he? is just as daft.

What are the lenders thinking about.Exactly.It`s also this type of lending that has given us stupidly high property prices and a massive fallout in the banking sector.

Jorgan_2

neas wrote: »

When houses dont cost my first right arm or my first born... then i'll be content eh?

7x average salary for a !!!! house... really seems appropriate :P. maybe if houses were 5x average salary i'd be happy.. obv i'd like 3.5 but that anit gonna happen for a long while.

Have you considered moving to a less expensive area? I couldn't afford to buy a property in my home town 15 years ago, so I had to move to an area I could afford.