A question for potential FTB's

meanmachine_2

John_M_Business wrote:

Whatever is discussed won't really affect me - house prices in my area have just risen slightly. Once I do sell I'll still have the same views about the market... even if a drop would actually suit me.

Do vendors actually follow the various housing indices and revise their expectations accordingly?

Or just base their expectations on number of viewings? In your position, with regular viewings, I'd believe my flat was reasonably priced.

If I was only getting one viewing a month, say, I'd be dropping my price, regardless of what the Halifax or anyone is telling me.

As I say, affordability levels might just keep the market where it is, but it doesn't take much to knock confidence, as we've seen in recent months.

Do let us know when you sell, and for how much (percentage wise).

meanmachine_2

John_M_Business wrote:

Why hasn't the market plummeted yet? What can this all mean?

I can answer that one - the market has never plummeted, and never will.

It slides in one direction or bunny hops in the other.

Even during the last crash (which, like World War One, wasn't called that at the time), prices bobbled up and down, but the general trend was down.

And that's despite affordability improving tremendously during the slide, as int rates were slashed.

Still, who knows? I wouldn't be surprised if, in a few years time prices are above where they now.

I'd be very disappointed, and totally priced out, but what can I say? Brits are obsessed with bricks.

Rave

The nature of the housing market means that prices will never plummet- when transactions take (in general) 6-8 weeks to complete, prices will only change relatively gradually. There'll never be a housing 'Black Monday' for example. Ultimately, what drives markets is human sentiment- and if a bear run starts, history shows us it is likely to continue.

A common factor in nearly all the historical booms which have preceded serious crashes is a great influx of speculators tempted by rapidly rising prices and the availabilty of cheap credit. Ring any bells?:)

thechatking

If it's going to crash, I wish it would hurry up and do it! A year ago, I said to my girlfriend (soon to be wife) that we should wait for a year to see what the market does. I stand by that, but am thinking the same thing now, too. The question is, how many years can you keep renting and watching the market before finally choosing to buy? We've been renting in three different areas over the past four years, but look set to stay where we are for another three or so years. Bored of renting, we'd love a house to make 'ours', but it just seems a big risk at the moment. It comes down to balancing the desire to get on with life against the need to not be financially screwed!

My big gripe is that one decision shouldn't have such a huge bearing on the outcome of your life. House prices should have been pegged back before they got this high, but now we're left with an impending recession and millions of financially handicapped, debt-ridden twenty-somethings. Hardly the basis for a stable economy.

In our situation, we have about 10% deposit. We like our current rented property and have no 'need' to buy at this moment in time. We just want to. I just hope it's not worst decision of our lives.