House Price "Crash"

neas

i thinki "house price dave" is a more fitting name for the 'correction' ;P

mystic_trev

As Britain wakes up to the nightmare of negative equity, we are facing a housing recession far worse than that of the early 1990s. Iain Macwhirter has a warning: don't buy a house now, at any price. Just say no. You have been warned

http://www.newstatesman.com/economy/2008/06/house-prices-housing-british

This is going to be far, far worse than the housing recession of 1990-92. Fuelled by irresponsible bank lending, UK house prices nearly tripled in the decade to 2007 - a more lunatic rise even than in America. British prices have been running at nearly eight times average earnings against a historic average of 3.5. This was never going to be sustainable. But right at the moment the bubble burst, in August 2007, a combination of related events conspired to turn this boom into an epic bust that is likely to consume the British economy and lead to a depression. You may think the credit crisis is over, but the real crisis is just beginning.

BTLNEWbie_3

mystic_trev wrote: »

http://www.newstatesman.com/economy/2008/06/house-prices-housing-british

Where is this crash then, getting bored waiting, green shoots are poking through everywhere.

abaxas

BTLNEWbie wrote: »

Where is this crash then, getting bored waiting, green shoots are poking through everywhere.

Personally I don't beleive that green shoots poking out of any property, is a good thing.

Best to get em out quick before the tree takes hold :rotfl:

hostman

mitchaa wrote: »

Yep i know what you mean.
This time last year my wife used to fill up her car for about £37.50, today it costs a smidgen over £50.

I have a small petrol Ford Fiesta and it costs me £50 to fill up. £100-£150 per month is generally what I spend and I don't even commute very far.

To the OP: The speed of the drops is what interests me, with so called high employment, the market is collapsing, it will be terrifying once unemployment increases, as predicted by various people, including the Government. The change in sentiment has been encouraging for everyone eagerly awaiting further falls. We will see 10-15% off from peak this year alone.

pickles110564

hostman wrote: »

We will see 10-15% off from peak this year alone.

No chance 5% if you are lucky, anymore and GB will win another election.

slipthru

BTLNEWbie wrote: »

Where is this crash then, getting bored waiting, green shoots are poking through everywhere.

Lol are you pickles? you both sound so desperate when you post.

SingleSue

PasturesNew wrote: »

A crash is a long-winded, slow thing. It starts with what we've seen recently - and either continues to tumble down, a property here, a property there ... a bit at a time, or it just bumbles along doing not much for quite a while.

At the moment all you can hear is the crack of the ice on the deck of the Titanic. The band stopped playing, and have now been told to play on. A few people are up on deck checking out the large lumps of ice. But we know where this story's headed.

I think this is a brilliant analogy.

hostman

pickles110564 wrote: »

No chance 5% if you are lucky, anymore and GB will win another election.

Are you a complete imbecile?

We're already down -7.8% from peak:

August 2007 (peak): 199,600
May 2008: 184,111
Change: -7.8%

Wake up and smell the coffee.

steadysaver

pickles110564 wrote: »

No chance 5% if you are lucky, anymore and GB will win another election.

YoY figures are showing ~ 6% + already :wall: