Debate House Prices


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So is this the picture?

I think that it is clear to (almost) everyone that house prices are on the way down. A nice dollop of inflation mixed with rising interest rates. Still little movement in wages. My wife had her wages increased by 1% this year, she was told that reflected the inflation rate-lol!

Where I am sitting it seems that we are experiencing an increasing number of forced sales and repos. People are getting deals of 10 to 20 per cent off asking prices.

Now if I was one half of a couple looking at some point to buy a home, what would I be doing? Just as the str brigade looked to call the top of the market will the new wave of ftb be looking at the bottom. I certainly think that reports saying drops of 50% would certainly keep me from entering the market for quite some time. What do you think? What would this effect be on the housing market?

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/10/nhomes110.xml

Comments

  • tradetime
    tradetime Posts: 3,200 Forumite
    Just as the str brigade looked to call the top of the market will the new wave of ftb be looking at the bottom. I certainly think that reports saying drops of 50% would certainly keep me from entering the market for quite some time. What do you think? What would this effect be on the housing market?
    Emphasis on the "stir brigade" a small number of people seeking to look clever and informed to their peers.
    Most people comment on what they see and hear and don't try "picking tops and bottoms" that is a mug's game, particularly in something as drawn out as the property market.
    So to answer your question on the "new wave of ftb" they couldn't really care less where the "bottom" is, just as they didn't care where the "top" was they will enter the market as soon as it becomes affordable to do so. This means that the point at which prices on the way down, meet with mortgage availability on the way up will be the point at which ftbs enter the market, and those holding out for some preconceived idea of where the "bottom" is, may get left behind as many regularly do.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
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