How can house price's fall so much??

Snooze

Hairy = troll.

Stop the lengthy idiots-guide explanations and graphs, guys.... :rolleyes:

Rob

fc123

ruggedtoast wrote: »

Some people dont have a choice about selling, homeowners are dying all the time, popping their clogs and having their estates carved up in short order by their children and the government. People are repossessed and the banks sell for them, some people have to move because their job does.

Local prices are set by a relatively small number of transactions, plenty of people have owned their property so long that falling prices wont bother them if the place they want to buy falls as well. Anyone who bought a new build in Thamesmead for £250,000 in 2005 is pretty screwed however.

:rotfl: :rotfl: I am a nice person...actually, very nice....lots of empathy, understanding , there but for the grace of god and all that......but, that's an area I know well............and that woman who paid £300k for a flat there in some block...well a fool and his/her money easily parted. Not much sympathy from me in that scenario.

fc123

neverdespairgirl wrote: »

I have a bet on with Ladbrokes that prices will fall, it's looking good.

First bet I've ever made, apart from £1 on the Grand National!

:eek: Gambling....:eek: It all starts with the first bet....;) if you win....then you want to go for a 2nd etc etc!!¬!!!

tomstickland

Hairy wrote: »

NOT the same thing. if your house goes up, you dont owe that extra equity to the bank.

Patronising T**T

So if it was bought, then it rose that much and then fell back that much, the buyer would owe no extra to the bank and could sell for the lower price.

mpsavuk

Hairy wrote: »

I cant help but notice that there seems to be loads of scaremongering on this site. People saying house prices will drop by over 50% in some cases.

I may be wrong here, but how is that possible. Let me explain.

If you owned a house worth £300k and all you could get for it was £150k you simply wouldnt sell. So how the heck are house prices going to drop that much? People simply wont sell. Even if prices drop by 25% I doubt many people would sell, they would stay put, surely?? I am by no means an expert, but isnt this common sense??

You obviously don't remember the 90's crash. People were saying this kind of nonsense back then and yet people still ended up selling below their mortgage value....because they had to.

pickles110564

jazzyjustlaw wrote: »

Sorry but Im someone who "just wont buy unless house prices fall by 50%" so where does that leave us?

Still living in rented paying for my mortgage thanx:rotfl:

pickles110564

mpsavuk wrote: »

You obviously don't remember the 90's crash. People were saying this kind of nonsense back then and yet people still ended up selling below their mortgage value....because they had to.

But more sat tight because they did not need to sell and just rode it out.

pickles110564

Snooze wrote: »

Hairy = troll.

Stop the lengthy idiots-guide explanations and graphs, guys.... :rolleyes:

Rob

Snooze is deluded.:rolleyes:

tradetime

2cats1kid wrote: »

I was there in the last crash too.

As a bright-eyed and bushy-tailed youngster I bought a one bedroom flat at the beginning of '91 - asking price was £42K and I got it for £40K. I thought I'd got a bargain although I was still stretched on the mortgage (these were the 15% interest rate days).

Then I got married and moved job to a different area and needed to sell it. The flat sold at the beginning of 1994 for £28.5K.

OK it's not a 50% loss, but I make it just shy of 29% so big losses can and do happen. Hubby incurred similar loss on his house (both moved jobs shortly after we married) so not the best start to married life!

Our current house we bought for £70K and at the peak the one next door sold for £225K, so thankfully we have a fair bit of equity and a paid-off mortgage this time around!

Interesting add on to that one, and what time can do, my girlfriend of the time bought a flat in '89, I think, for £47k. In '95 the one nextdoor was selling for £30k and they couldn't get a buyer so they took it off the market. So a potential loss of more than £17k if she'd had to sell (she didn't) Anyways time went by, a lot of time..she sold at the end of '03 for £90k. Point being as long as your buying within your means, and it's not to flip for a profit, it really doesn't matter.

magicdogsbrain

pickles110564 wrote: »

Still living in rented paying for my mortgage thanx:rotfl:

...and your rents going up 50% :eek: