House prices fall 2.5 per cent!

Olivia2008

Just read that

Clicky!

House prices fall 2.5 per cent


http://www.itv.com/News/Articles/House-prices-fall-25-per-cent-123797790.html

What do you guys think about that?

BAD FOR OWNERS - GREAT FOR BUYERS!:T

Olivia2008

The markets getting worse and worse -whats going on?

brit1234

Olivia2008 wrote: »

The markets getting worse and worse -whats going on?

No, its getting better. Property was 40-50% overvalued and based on speculation rather than fundamentals. This is simply the correction that was going to happen when the loose lending stopped.

In the next 2-3 months 2 years of rises will be wiped out.

I think everyone now sees property crashing.

confused31_2

Its okay for buyers, who have sold now, or have rented and got a big deposit, i dont thinks its very good for first time buyers at the moment due to the mortgage rates and the high deposits the banks are asking for.

Mind you if youve got 20,000 pound savings, you should be able to pick up a decent house for 100,000 pound and you should be able to get a mortgage quite easy.

The only problem is not many first time buyers have got big deposits, which means the banks wont give them a mortgage at a good rate, and will end up paying high interest rates if they do get a mortgage.

confused

confused31_2

brit1234 wrote: »

No, its getting better. Property was 40-50% overvalued and based on speculation rather than fundamentals. This is simply the correction that was going to happen when the loose lending stopped.

In the next 2-3 months 2 years of rises will be wiped out.

I think everyone now sees property crashing.

I think the worst is going to come in 2 years time when all the loose lending from last year catches up with the people who had 100% mortgages and their house prices have fell.

Meaning they wont have the equity to change mortgages to better rates and will be stuck with their current banks variable rate.

Its a shame but you could see it happening , it was just a matter of time.

confused

neverdespairgirl

Olivia2008 wrote: »

The markets getting worse and worse -whats going on?

Better and better, I think. Cheaper houses are not a bad thing. People forced to mortgage themselves up to the eyeballs to buy a normal family home, that's a bad thing.

confused31_2

I personally think its good that house prices coming down, but i think a lot of people are going to end up in a mess, like you said earlier especially the people who have mortgaged to the max and will end up with negative equity.

confused

neas

confused31 wrote: »

Its okay for buyers, who have sold now, or have rented and got a big deposit, i dont thinks its very good for first time buyers at the moment due to the mortgage rates and the high deposits the banks are asking for.

Mind you if youve got 20,000 pound savings, you should be able to pick up a decent house for 100,000 pound and you should be able to get a mortgage quite easy.

The only problem is not many first time buyers have got big deposits, which means the banks wont give them a mortgage at a good rate, and will end up paying high interest rates if they do get a mortgage.

confused

Buyers who haven't got 20k saved up???

Where have those FTbers.. been the last 2-5 years... you can easily save 20k (couple) within 3-5 years.....

I tell you where those FTbers have been... partying and using Credit Cards sp they dont have positive cash,.. they owe people money!.

People are not financially intelligent these days.

maninthestreet

2.5% a month = 30% a year !!!!!

neas

and i hate it when people talk of the market getting worse... in a market.... it never gets worse or better.

Its all from a persons perspective...

You own a house and want to selll forever... its getting worst for YOU
You are a FTB and dont want to be forced to rent forever... its getting a hell of a lot better for you... in the fact you can pick up a tidy repossesion in a year to two time.
You own a house with alot of equity.... you want to move up the ladder... this is also good for you as your jump up the ladder costs 50k instead of 100k.

RichardDJ

All I can say is 'hello and welcome' to the price crash. Having struggled to try and buy a house for the first time for the past year and given up due to being priced out of the market by greedy buy-to-let'rs I welcome the crash with open arms.

I have a friend who was very senior in the mortgage industry who says the housing market is in meltdown and worse is too come.

I feel for those who pushed themselves into 110% etc mortgages, i really do.

As people begin to come off fixed rate 2 or 3 year term mortgages the situation will worsen again, with rising fuel and food prices the futures a bit bleak.

Yes it's a crash, but it's a crash down to normalisation of over-inflated values that have been perpetuating the wealth of the rich...bring it on!! :beer: