How Much Will Prices Fall ?

steve40

Perhaps extra questions in this are have you witnessed a 'crash' before? Do you own a house? What part of the country do you live in? As otherwise the figures are either geographically based or wishful thinking!

pickles110564

steve40 wrote: »

Perhaps extra questions in this are have you witnessed a 'crash' before? Do you own a house? What part of the country do you live in? As otherwise the figures are either geographically based or wishful thinking!

Last crash was living in East Anglia,3 Bed Detached new estate house was valued at £96k sale was going through but crash sent value down to £65k.
When sale went through sold at £61k bought reno project in better area for £67k, sold 1 year later for £110k.
Been one of the lucky ones never had negative equity and would never wish that on anyone not like some on here do (BB & Squitnow)
As always with a bit of hard work people can turn this into their own advantage, just hoping that if it gets really tuff people still have a soft landing.

baileysbattlebus

During the last crash we were living in Berkshire -3 bed detached going for £136k, crash brought it down to £80k, when it bottomed, or rather after the B/S refused us an additional loan to do an extension through lack of equity (house worth £80k, mortgage £60k needed £16k) in the house we bought a 5 bed house for £93k.

Like pickles110564, never suffered from negative equity, our friends did though, saw value go from £136k to £80k, had a 95% mortgage. They couldn't afford to move so they stayed where they were.

Pez2

Benefits_Blagger wrote: »

cant remember which is which, but the one were you dont count inflation as thats easier for people to imagine and estimate.

In real terms I think we'll go back to 2001 prices at least, although I admit I'm towards the more pessimistic end of the scale with regards to the housing market.

However, I don't have a strong opinion on what's going to happen to inflation, so it's difficult to predict a percentage nominal change. If inflation gets out of control then it's quite possible we could have a crash and yet nominal prices might hardly drop at all, which I believe is what happened in the 70s.

pickles110564

GavP wrote: »

If inflation gets out of control then it's quite possible we could have a crash and yet nominal prices might hardly drop at all, which I believe is what happened in the 70s.

It would be nice to get back to the 10% & 12% payrises again, not like the boring 4% we had this year

Zammo

30% nominal. The housing market is utterly fooked.

Kez100

I was in the last crash. Bought towards the end of the major fall (1991) at 52k - thought it was the bottom (our property had sold for 69k in 1989) It wasn't the bottom and we lost 10% selling in 1994 for 48k. We had to save ourselves out of it as we wanted to move, which we did. I think back then we were better placed to save as saving was part of our upbringing rather than cheap debt scenario existing in recent times. Also 10% of 52k was rather less than 10% of today's prices.

When we moved in 1994 we did buy at the bottom of the market. Well,the bottom of that market! Bought a place for sale at 120k for 75k. We werelooking only at repos and desparate sellers and other sellers just wouldn't budge on price (if people don't need to move they are more reluctant to deal so we didn't even bother viewing them in the end) Who knows what will happen this time but I see no reason why it should be less of a fall than last time. I predict 30-40% - not that I know!

stuffcrash

Around 40% drop.

IveSeenTheLight

Its intersting so far that roughly 52% think that house prices will drop between 0 and 20% and roughly 48% think that the house prices will drop more than 20%

It would be interesting to see a poll on how much properties would have to drop to be affordable to them

tr3mor

IveSeenTheLight wrote: »

Its intersting so far that roughly 52% think that house prices will drop between 0 and 20% and roughly 48% think that the house prices will drop more than 20%

It would be interesting to see a poll on how much properties would have to drop to be affordable to them

I voted 40-50%.

House prices are affordable to us at the moment. Give it a couple of years and mansion prices will be within our grasp!

:money: