House prices fall 2.5 per cent!

Tassotti

Thats always been the way...

Want a new car...save up for 10 years and buy...or borrow..get it and repay...?

Housing no different,..just larger amounts

MYLITTLESISTERLOLA

That's not quite what I'm saying, I meant someone on £15kpa buying a £20k+ car and changing it every 2 years, keeping up with the Jones, getting the 52" tv, having 3 holidays a year. I'm not saying finance/loans are the problem, I'm saying the ease in which some people (already heavily committed) enter into MASSIVE financial agreements taking into account there earnings. Not one customer I have had for a loan thinks to do an income & expenditure and when I do one out for them they are usually horrified at how much they actually spend. When people are refused for a loan due to not having the repayment capacity they blame the bank for not 'helping' them. I have seen my bank refuse people on reasonable grounds for being heavily committed and they go elsewhere and get the loan ending up in an DMP, IVA, bankruptcy within a few months.
I understand not all banks are like this but with debt comes responsibility.

pickles110564

mr.broderick wrote: »

Prices will start to rise again in september.

I am pretty sure it will be in April 2009:T

Captain_Mainwaring_2

MYLITTLESISTERLOLA wrote: »

I work in a financial institution and our economists/regional director etc are painting a bleak out look but the simple fact is no-one has any answers or any date that's 'the crunch' will be over ( unless they have a crystal ball I don't know about ) it's a case of suck it and see. From my own point of view first time buyer in a council house with 80% LTV taking into a/c 20% discount from council ( I've checked with my chosen lender & they confirm this will be classed as 80% LTV ), I am waiting to see what happens, Northern Ireland in a bit of a unique situation, the asking price for house next door has just dropped by 20k which works out at the 13ish% everyone is talking about
In my opinion I am not racing to buy until I see some sustained growth.
I agree with the comments, if your not intending to sell it could still effect you as your LTV is dropping by the month & fixed rate deals are expiring. I personally do not feel sorry for the people who have 115% mortgages, roughly translates as bmw in drive, designer clothes, accumulated debts all shoved on to the mortgage and they suddenly disappear !!! not quite that easy as they are finding out, the people who were buying up BTL like they were sweeties pricing FTB's out of the market it's pay back time !!:p . The biggest problem I foresee are the people who were getting an annual further advance to clear credit card debts, pay for new car & holidays, I have seen many of these in my time at work, SOME of these people are still spending like this will be an option, only to get themselves in debt and then blame the bank for not helping them !!! The finincial institution that I work in did not offer 100% + mtgs, we had no sales targets, we were actively encouraged to lend responsibly regardless of income to the bank ( not just recently but since I have been a lender 3+ years), people often got angry saying 'I came to the bank for help and there useless' when they had run up 45k+ unsecured debt living the high life. Banks have been heavily blamed for all this going wrong but quite frankly people have to accept that the buy now pay later mentality has came back to bite us in the bum
Sorry for the rant & spelling:rotfl:

Do you mean plain and simple greed and living beyond means?

PS, the crunch hasn't started yet, this is just the warm up.

MYLITTLESISTERLOLA

Yes I mean greed and I agree with you this is only the beginning

neverdespairgirl

These are drops in asking price, not sold prices. The asking prices initially seem to be lower than they were last year, and WC1 is an area where previously places tended to sell at or above asking price. So there is a big drop.

You said, "when you say 'big price drops', all that i can see is nothing more price dropping 10%."

I think your maths is a bit off, though. No. 2 on my list is a drop of 16.67%, no. 4 is a drop of 12.5%, no 7 is a drop of 12%, and no. 12 is also a drop of 12%.

neverdespairgirl

Sorry if facts bore you.....

Just for you, however, a 21% in central London:

http://www.rightmove.co.uk/viewdetails-16037992.rsp?pa_n=5&tr_t=buy

neverdespairgirl

chucky wrote: »

here you go, price maintained and not dropped - so what is your point?

http://www.rightmove.co.uk/viewdetails-20723093.rsp?pa_n=1&tr_t=buy

http://www.rightmove.co.uk/viewdetails-20060330.rsp?pa_n=1&tr_t=buy

http://www.rightmove.co.uk/viewdetails-20478341.rsp?pa_n=4&tr_t=buy

does it mean that by me putting 3 examples on it's a better point than yours?

I'm not quite sure why you are being so hostile?

This exchange started because you said:

neverdespairgirl i monitor these prices too, i've found if there is a price drop it is for the 'weaker' properties.

if there are any significant price drops please let me know!!

So I did - I posted a range of price drops from top to bottom in WC1, including both big Georgian places and tiny flats. You then said, "all less than 10%, not significant", and I pointed out that actually quite a few of those drops were between 12% and 17%.

By the way, you said that your 3 showed no drops, but the second actually says on Property Bee:

22nd May 2008

• Price changed: from '£6,500,000' to '£5,950,000'

neverdespairgirl

chucky wrote: »

i have clearly said that all of these prices are no more than 10% and you have said that they are big price drops.

CHECK YOUR MATHS.

Quite a few of those I posted are 12% or more, up to 17%!

merlinthehappypig

neverdespairgirl wrote: »

I'm not quite sure why you are being so hostile?

I've had a few lately as well.

It's completely unnecessary, but probably the last resort for some people for a losing argument.

The forum equivalent of sticking your fingers in your ears and saying na na na.

Just ignore it. Your posts are well educated, helpful and appreciated.