Housing gloom 'worst in 30 years'

carolt

adr0ck wrote: »

how much influence does anyone think that the internet has on the housing gloom etc?

As part of the media generally, then yes, of course it plays a part. If you mean pro-crash posts on this forum (which, forgive me, but owing to previous posts by you I suspect you might) then not one jot or tittle, or certainly not in any way that would be statistically visible. As little more than a few hundred visitors visit daily, I cant imagine we're going to have much impact nationally!

However, funnily enough, I think the internet may well have the effect of propping up prices. The creation of all the house price sites - that didn't exist at the time of the last crash - that tell you what real sold prices were for your house or street, may make sellers 'stick' more at higher prices, as they will be reluctant to accept less than an identical house down the road sold for recently. In previous crashes, people just didn't know what other houses had sold for, so were only comparing their selling price with the price they'd bought it for probably years before. Now they tend to compare it with the highest (known) achieved price for their road/house type, and regard anything less as 'an insult', even if they've made 300% since they bought it! :rolleyes:

neas

I think quite alot, lol... word of mouth spreads fast.. I've told 4-5 friends after i found out... the internet accelerates this.

MUDGUTS

I think this will be a lot worse than most of us think it could be. Why?

People are generally stupid, short sighted and greedy, I have seen hundreds of folk watch the value of their house rise and immediately go and get a conservatory built on the back. Last time I looked into the value this added, it was 10%, that's 10% the cost of the conservatory, not the house, so at 5k they have just spent 4.5k which they will not get back.

The next thing they must do is borrow against the house to get a secondhand, clocked, ex-fleet, silver 3 Series BMW on the drive to 'keep up with the Joneses'. (Older types will get a Golf)

Then comes the laminate flooring, and huge TV.

If there is any money left they MUST have a jet wash for the new brick drive and PS2, etc., etc., plus a mini moto, and other 'boys toys': All on credit cards.

It's a long story but I would come into contact with these types a lot and out of curiosity I would ask them if they thought there would be a house price crash. The answer, from just about all was no.

The credit crunch & house price crash is more than a crunch IMO, it's the start of it and a lot of stupid, greedy people are going to lose their homes, some through not being able to re-mortgage and others through not being able to borrow more to live.

Borrowing money in the way we have been doing for the last few years is over.

Like I said people are generally stupid, short sighted and greedy.

...and yes the internet, without doubt has a large part to play, either way.

dannyboycey

Guy_Montag wrote: »

A couple of monkeys on Today calling for the BoE to buy MBS to solve this problem.

This makes me sick. I bet they didn't call for the BOE to 'take action' to stop their house quadrupling in value.

WTF?_2

Starz_Ceilings wrote: »

Everywhere seems to be predicting doom and gloom in the housing market.

Hopefully we will not experience anything like what is happening in the USA at the moment where I have heard from a friend who lives there that in some areas the sitaution has got really bad.

I doubt we'll see the same scale of 'destruction' where quite literally whole neighbourhoods become deserted and derelict and values there become effectively zero. The resulting carnage destroyed lenders' capital on a large scale and hence the credit crunch which has hit the world.

However, we will see substantial price drops with many, many people in real financial trouble. Some of them greedy idiot speculators who ploughed money blindly into a 'sure thing', others who MEWed their way into crushing debt and quite a few who unfortunately and unwisely borrowed to buy overpriced housing on the back of sentiment.

We'll also see some serious problems in UK banks as people default on loans (they are already on shaky ground) and a very nasty recession as retail spending dries up and the finance sector cuts jobs.

m00m00

Privatise Profits, Socialise Losses, the mantra of 21st century capitalism

WTF?_2

MUDGUTS wrote: »

I think this will be a lot worse than most of us think it could be. Why?

People are generally stupid, short sighted and greedy, I have seen hundreds of folk watch the value of their house rise and immediately go and get a conservatory built on the back. Last time I looked into the value this added, it was 10%, that's 10% the cost of the conservatory, not the house, so at 5k they have just spent 4.5k which they will not get back.

Good post, but to be fair something like a conservatory does at least add some sort of value to their house as opposed to splurging the money on cars and holidays. Although I believe that in a normal housing market the general rule is that you never really get back what you paid in home improvements unless you add extra, usable square footage to your living space (extra bedrooms or bathrooms, bigger kitchen etc).

It's going to be very entertaining looking back in a few years time at TV programmes like 'House Doctor' where you got people adding a seagrass carpet, painting the walls magnolia and putting in a new cheap, white bathroom suite and then getting 20k more than the previous valuation of their house :rotfl:People will think for sure it's a wind-up.

luvpump

Starz_Ceilings wrote: »

Everywhere seems to be predicting doom and gloom in the housing market.

Hopefully we will not experience anything like what is happening in the USA at the moment where I have heard from a friend who lives there that in some areas the sitaution has got really bad.

We are not that far off in Macro Economic terms from the U.S situation, a lot of people are gonna suffer here over the next 12 months or so !! .. The "Bulls" can stay in a state of Denial as far as i am concerned ...they can fiddle while Rome Burns .. its going to happen whatever they say or how much they try & convince themselves or others .. !! the only question is how far the decline will go. & over what period ... .. I would suggest at least 20%..at least !!! :T

jamescredmond

m00m00 wrote: »

Privatise Profits, Socialise Losses, the mantra of 21st century capitalism

slightly off-topic but this REALLY says it all. thanks.

anyone who doubts this could do worse than study the case history of mapely steps (as followed by private eye). here we have an off-shore co. that bought HMRC real estate at a discount and on a lease-back arrangement.

not long after the acquisition, mapely appeared with a begging bowl, bleating about solvency problems.HMRC was initially reluctant to part with (our) funds until it was pointed out that, if mapely sank, the assets would end up in the hands of the lender ( in this case, merchant bank). then it would be a completely different ball-game, with the new owner in the delightful position of being able to demand (and get) massively increased lease fees.

HMRC duly capitulated 'in the interests of taxpayers'!!!!!!!

I don't know which is worse: the grasping spiv co. or the criminally incompetent civ. service.

I'm going on a bit now so I'll shut up.

izzybusy23

MUDGUTS wrote: »

I think this will be a lot worse than most of us think it could be. Why?

People are generally stupid, short sighted and greedy, I have seen hundreds of folk watch the value of their house rise and immediately go and get a conservatory built on the back. Last time I looked into the value this added, it was 10%, that's 10% the cost of the conservatory, not the house, so at 5k they have just spent 4.5k which they will not get back.

The next thing they must do is borrow against the house to get a secondhand, clocked, ex-fleet, silver 3 Series BMW on the drive to 'keep up with the Joneses'. (Older types will get a Golf)

Then comes the laminate flooring, and huge TV.

If there is any money left they MUST have a jet wash for the new brick drive and PS2, etc., etc., plus a mini moto, and other 'boys toys': All on credit cards.

It's a long story but I would come into contact with these types a lot and out of curiosity I would ask them if they thought there would be a house price crash. The answer, from just about all was no.

The credit crunch & house price crash is more than a crunch IMO, it's the start of it and a lot of stupid, greedy people are going to lose their homes, some through not being able to re-mortgage and others through not being able to borrow more to live.

Borrowing money in the way we have been doing for the last few years is over.

Like I said people are generally stupid, short sighted and greedy.

...and yes the internet, without doubt has a large part to play, either way.

Ooh watch what you say!! You've repeated similar things to what I have said recently and got completely lambasted by quite new folk on this forum who had a dig at me who don't even know me or my own personal situation who just want to tell you what a nasty little person you are.. charmer I think was the word used.

Watch out, bullies about!!

Completely forgot to say, good post, my sentiments exactly. This has gone above house prices, its total greed now and people just don't know when to stop stuffing their fizogs.