How can house price's fall so much??

chrisandanne

I've thanked everyone for their informative replies and for taking the time to try and point out some facts.....because I don't think Hairys going to

Ax

Dan:_4

narced wrote: »

And what if you can't afford your mortgage repayments? What if you have to move through e.g. divorce, relocation etc? What if you took out a 125% NR mortgage and they have put you on their SVR and you are in negative equity? Sure if you don't have to sell you will not want to sell for less but some people have no choice, and its the people selling that dictate the market value of a property.

Earlier this year a house near us went on the market for £725K. Nice place, built about 4 years ago as a brownfield development (i.e. someones back garden got built on). Its been steadily reduced and is now on for £599950.

That's a drop of 17% in less than 6 months. And it is still not selling, and rightly so, as a 4 bed detached with a tiny garden at even that price is unaffordable to 99.99% of us.

Of course there will always be forced sellers as you describe, however the majority will sit tight in the current climate.

PasturesNew

Hairy wrote: »

This site is laughable! Money saving experts my !!!!! My friends were right when they said the internet was over run with numptys! Adios and keep dreaming you bunch of nomarks!

You mean you've only just heard about prices going down and are cacking it because you were hoping to make a fortune from property.

Now who is the numpty?

PasturesNew

ruggedtoast wrote: »

Thats fine, I dont think anyone will miss you if you dont bother to post here again. You've demonstrated all the economic acumen of someone's dad in the pub, on their fourth pint and about to embark on a "what they ought to do" rant.

You're also extremely rude, which has just made you look like even more of a twit.

I wish we could nominate this for posting of the month.... but it'd probably break somebody's tidy little rule so would be buried.

Well said that man!!

(I highlighted my favourite bit)

amcluesent

>Money saving experts my !!!!!<

True to some extent. In a previous post I asked how many blow-hards had shorted the housing market to profit from decline they were certain was coming. None had. Some STRs had not lost a paper gain.

PasturesNew

Dan: wrote: »

Of course there will always be forced sellers as you describe, however the majority will sit tight in the current climate.

Many people have no choice about sitting tight.
gf/bf leaves them
somebody dies
job finishes
it was all just a stretch too far when they lied on the form to get the mortgage
property was supposed to go up and they only bought it to flip it
etc

These days people want to move on/have to move on more frequently than they seemed to do in the last crash in my experience. Back then most people were buying houses for 5-10 years, now people seem to buy them with a 2-3 year timeframe only.

Neillgb

I live in the south east. Recently an elderly man who had to go into a nursing home accepted £140K for a bungalow that would have sold for £220K maybe 15 months ago. He had to sell because of pressure applied by the authorities to pay his own nursing home fees. I make that 36%. This is a fact, it happened. Only 14% to go for the 50%!!

The truth is that he was living on what I would describe as a 'waiting for god' estate. Bungalows you couldn't swing a cat round in which were grossly overpriced.

chrisandanne

Dan: wrote: »

Correct, but it was worth 300K once so will be again.

Course it will...eventually, but that's hardly the point NOW....and shouldn't you be watching the football ? Ax;)

Dan:_4

chrisandanne wrote: »

Course it will...eventually, but that's hardly the point NOW....and shouldn't you be watching the football ? Ax;)

It's only a problem if you NEED to sell - The majority don't and wont.

I've got the football on - not quite the same when England's not in it tho...

m00m00

Dan: wrote: »

Of course there will always be forced sellers as you describe, however the majority will sit tight in the current climate.

it all depends on how many forced sellers there are though (51% is still a majority)

remember house prices are set at the margin, and any amount of forced sellers will have an impact on the market at large.

if you are in the position where you are comfortable and happy in your home, the price just shouldn't matter anyway. It's a home after all, which is priceless if it's the right place.