House prices..

fendi

fendi

fendi

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Joined
23 May 2005
Posts
2,156
With the decrease of house prices recently, is there going to be a shortage of houses in the future with more people wanting to buy?
 
Decrease of house prices? where do you live? Houses prices are still on the rise just not as fast.

there's already a housing shortage(affordable).
 
i guess that is true. It will be interesting to see though what the govenment will do to try and increase the amount that will be built if prices do continue to fall.
 
AcidHell2 said:
Decrease of house prices? where do you live? Houses prices are still on the rise just not as fast.

there's already a housing shortage(affordable).
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I live in Cambridge. A friend recently bought a 1 bedroom flat for 112k. Granted it isn't big but it is a lot cheaper than i have seen them go for recently.
 
bottom end of the market and very top end is seeing a slight fall at the minute. the bottom end is falling as there have been simply to many flats built in city centres up and down the country and people are now struggling to shift them. the government would have to go and a housing building scheme like never before to match demend and it's very unlikely to happen thus houses will remain in short supply and the price will over time continue to rise there will be blips and corrections but look at the graph over the last 70 odd years it's a continuous rise.
 
there is no general fall in house prices at the moment, I reckon on a period of level prices for a while
 
Conversely, the increase in house prices could be said to be due to artificial scarcity caused by the house builders keeping supplies short...
 
Rotty said:
there is no general fall in house prices at the moment, I reckon on a period of level prices for a while
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History shows that prices in this country don't level, especially after a long period of sustained price rises like we've had. Once the market starts to slow it's just the calm before the storm. Price will have to go below the long term trend before they begin to rise again.

platypus said:
That's pretty amazing for Cambridge. Was it council subsidised?
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I've noticed prices falling over the last few months, but that does seem quite cheap.
a1ex2001 said:
the government would have to go and a housing building scheme like never before to match demend and it's very unlikely to happen thus houses will remain in short supply and the price will over time continue to rise there will be blips and corrections but look at the graph over the last 70 odd years it's a continuous rise.
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The trend is up, but any first timer buying a house now would be a brave sole.

This graph explains it pretty well I think. There never has, and it's unlikely there ever will be steady house prices in the uk.
 
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Stretch said:
History shows that prices in this country don't level, especially after a long period of sustained price rises like we've had. Once the market starts to slow it's just the calm before the storm. Price will have to go below the long term trend before they begin to rise again.


.
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last time they did in most areas, the rise ended in the early 90s and stayed almost unchanged till 2000 , only in a few areas was there a significant drop

http://www.wheresmyproperty.com/prices/graphs/histprices.gif
 
Stretch said:
Even a steady house price during that period would constitute a drop of 3-4% a year in real terms due to inflation. Best off putting your money in the bank.
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in real terms then yes there may have been a slight drop but historically there has never been a huge (20%+ ) drop in property prices that some people seem to hope will happen


the only thing that would facilitate such a drop would be a return to double digit interest rates , the house price to income ratio is often quoted to suggest that things are out of hand but the more real world mortgage payment to income ratio has changed little over the years
 
Instead of building these box houses, why don't they start with apartment blocks? Not everyone wants a garden to maintain, surely apartments would take up a lot less space and would be cheaper.
 
Rotty said:
in real terms then yes there may have been a slight drop but historically there has never been a huge (20%+ ) drop in property prices that some people seem to hope will happen
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Wasn't there a big decrease in value in the 80's? What percentage was that?

the only thing that would facilitate such a drop would be a return to double digit interest rates
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Given the recent headlines about unsecured and secured consumer debt, I am not sure it would need interest rates to hit double figures. Perhaps a 1 or 2% increase would be enough to tip the economy over, it's already teetering on the edge. That said, I can't foresee a rate increase given the current state of the World economy.

the house price to income ratio is often quoted to suggest that things are out of hand but the more real world mortgage payment to income ratio has changed little over the years
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I can't believe that's true. I saw an article on the news just last week that stated mortgage payments as a percentage of disposable income are higher now then they have ever been. The house price to income ratio is well out of kilter - I would be stunned if anyone on these forums, or anyone anywhere could reasonably suggest that current house prices represent good value for the purchaser, or that those prices are reasonable and fair. Houses are massively overvalued, in much the same way that dot com stock was before that bubble burst.

I am not interested in doom and gloom, but I believe the market needs a correction. Whether that'll happen, and to what extent that will occur only time will tell.
 
The Scottish Assembly recently (according to regional TV) have decided to build affordable local homes and to ensure there remains some affordable housing are removing the right to buy them. Some housing expert on the report said the way to deal with the price explosion and the inability of people to afford a house was to create a stock of local authority housing.
 
platypus said:
That's pretty amazing for Cambridge. Was it council subsidised?
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Prices are on the way down in cambridge. Anyone who continues to seek high prices or even the price they bought at are having their property sit there. It may just be a small dip but if you buy the property new you will see 4 bed houses especially that have been on the market for 8 months to a year.

One of my mates sold his house for £250 and had it fall though after a considerable wait. He had to go down another 25k in the end to sell it. The market in cambridge is very ropey at the minute.
 
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