when will people start buying again?

EdInvestor

confused31 wrote: »

Im not in a rush to move, but some people are saying 2 years, which i dont mind waiting, but when do you think the first time buyers will be back? and the so called house market crash end?

The problem is mainly caused by the so-called "credit crunch" affecting the banks.They have lost a lot of money and are trying to get their finances back in order. This has meant there is only about half the money available for mortgage lending at present, and the terms are much stricter, with FTBs required to have deposits as high as 20%. Thus they can;t buy. The few that can are worried they might make a mistake as prices might fall soon after they bought.So they are backing away.

The process of getting the banks' finances back in order is now underway, and the markets affected by the credit crunch are also now functioning again, though not yet properly back to normal. The Govt is moving in more confidently now to sort out problems getting in the way. My gut feel is things might ease up a bit towards the end of the year, and by then prices will have dropped around 10-15% off the peak in some areas, which makes it easier for those at the starter level.

If I was selling, I would leave it till next spring because not only is it hellish difficult to find a respectable buyer right now,only around half of sales are going through to completion.The rest are falling through.

Selling is stressful enough at the best of times, but the hassle factor at the moment is stratospheric and the likelihood of failure very high. Unless you are really desperate, much better to wait IMHO.

Turnbull2000

epz wrote: »

think about it interest rates are typically 30% higher in real terms than 2 years ago, wages have gone up a little but the cost of living has gone up a LOT and there is an expectation of price falls. its not looking good for a large number of FTB's returning any time soon.

Yup, not only has the cost if living risen substantially in a few years, but salaries have barely budged and on a (as an example) £140,000 first-time home...

2005 Fixed rate 4.5%, 100% mortgage, £786 p/m

2008 Fixed rate 7%, 90% mortgage, £14,000 deposit, £900 p/m

Don't see why prices won't fall back to 2005 levels pretty quickly. Maybe you should drop your price back 3 years OP?

aardvaak

confused31 wrote: »

Ive got my house up for sale, its been up for 7 months and we have had 3 viewings, when do you think the prices are going to bottom out?

I think there are not may people out there buying as they are scared of loosing a lot of money on buying a property, not so much for people like myself who are moving up the housing ladder and already own a home.

But there seems to be no first time buyers out there, i understand i will have to drop the price on my house to sell, but i think its all down to when the first time buyers will be back.

Im not in a rush to move, but some people are saying 2 years, which i dont mind waiting, but when do you think the first time buyers will be back? and the so called house market crash end?


There are people still buying if the property is a sensible price - perhaps you should reduce your price!

bluejake

confused31 wrote: »

Ive got my house up for sale, its been up for 7 months and we have had 3 viewings, when do you think the prices are going to bottom out?

I think there are not may people out there buying as they are scared of loosing a lot of money on buying a property, not so much for people like myself who are moving up the housing ladder and already own a home.

But there seems to be no first time buyers out there, i understand i will have to drop the price on my house to sell, but i think its all down to when the first time buyers will be back.

Im not in a rush to move, but some people are saying 2 years, which i dont mind waiting, but when do you think the first time buyers will be back? and the so called house market crash end?

confused

Buyers will be back when prices fall to levels they can afford. It may very well take sellers two years to realise the value of their property in their minds is not reality. You can sell your property now if you sell at the right price. Or maybe it will take you two years to come to terms with this - by which time the right price will be considerably less than it is now.

Many banks have been very close to going to out of business, they are not going to repeat their lending criteria of the last few years and they are certainly not going to exceed it allowing house price inflation to take off again.

If you mean that somehow first time buyers will be able to afford the inflated bubble prices in two years time that they cannot afford today i.e the market returns to [strike]normal[/strike] abnormal, presumably because banks go back to lending 100% mortgages self certification or 6 or 7x salary then read above again about coming to terms with reality.

martinbuckley

confused31 wrote: »

Ive got my house up for sale, its been up for 7 months...

, i understand i will have to drop the price on my house to sell

You mean you haven't dropped it yet in 7 months in a collapsing property market???

I think you've just found the answer why your house hasn't sold.

cells

house prices will drop a LOT

people have less and less money after fuel/gas/electric/food/tax and wages are not going up much if at all. those things we have to pay for even if the price goes up a lot. where will we make the difference up?

the answer is in housing, both buying, and renting.
people will have less to spend and hence in the short/mid term house prices and rents will fall.

in my local area, a decent 3 bed house is about 150k. i expect them to fall to 100k within the next few years.

geoffky

EdInvestor.....
The process of getting the banks' finances back in order is now underway, and the markets affected by the credit crunch are also now functioning again, though not yet properly back to normal. The Govt is moving in more confidently now to sort out problems getting in the way. My gut feel is things might ease up a bit towards the end of the year, and by then prices will have dropped around 10-15% off the peak in some areas, which makes it easier for those at the starter level.


PROOF PLEASE.. can you explain what you mean by this and what are the government doing to help.


..
.you have to be joking...tell me you are...this is the most absurd post i have seen on this hugs and kisses site..

NOTHING TO DO WITH PRICES ? what is a respectable buyer ?

bo_drinker

If you haven't dropped a penny in 7 months I would knock ten percent off tomorrow and be prepared to knock more off in a month if you still have no joy, otherwise you have no chance. At the end of the day they are now like cars they are worth what someone is prepared to pay. I will be knocking more off ours next week and give it a month then the sign comes out of the ground. Missed the boat unfortunately.

brit1234

There are so few buyers out there that anyone has to knock a sizable amount to sell. Like they use to say "Supply and Demand". Their is huge and rising supply and few low demand due to everyone knowing prices are falling fast and very few buyers with the deposits lenders now require.

confused31_2

martinbuckley wrote: »

You mean you haven't dropped it yet in 7 months in a collapsing property market???

I think you've just found the answer why your house hasn't sold.

If you read the full post, i was not asking why my house has not sold, i was asking when the market would stabalise and when would the first time buyers come back#?

I know i need to drop my price but like i say i dont think i will sell it until first time buyers come back, also its pointless me selling my house at a low price which i dont mind doing if it means i cant get the house i like, but at the moment the houses by me have just not started to come down.

I suppose its like catch 22, im willing to drop mine say 20,000, but if i do ive got to also expect other people to drop theirs and it just doesnt seem to be happening at the moment.

Im not in a rush so i will just hang in there, when the houses start to come down which will be beneficial to myself, i will then drop my price.

Ive just asked people when they think it will stop and the prices will bottom hout and the first time buyers will be back?

I thought i was the one who was confused:rolleyes:

confused