House prices..

dannyjo22 said:
They aint the 4 bed house price and above is really suffering. They just are not able to sell them. It's been like that for a year.

There are still 4 bed houses on the market in cambridge that I visited at the start of the year.

Where you are we looked at some 4 beds in great cambourne over 4 years ago. They where up at the time for £280,000. One now sits there at £289,000 after 4 years and another at £315,000. There are a few on rightmove on brookfields too that we looked at. They would have lost us money. For some reason the larger houses there have made next to nothing in 4 years.:confused:
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That's odd as the ones I've seen recently sell have been for a good amount. I watch what the house buy and sell prices are online to keep up with the market. If we sold this place we'd make over 30k already and we bought 3 years ago.
 
House prices are a joke atm. being 19 i'm going to find it so hard to get on the property ladder. im going to have to rent if anything which i just see as dead money as i'm not gaining anything from it.
I'd be happy with a flat but even there going 100k+
 
Rotty said:
there was a reduction in some areas but taking the country as a whole there was not
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In the absence of proper land registry figures for that time I don't think you can give such a sweeping statement.

The Nationwide figures I posted earlier show a drop from £72,366 in Q3 1989 to £58,687 in Q3 1994.
I'm not saying these should be taken as gospel, but there are numerous differnent statistics showing different results.
It's as foolish to say there was no drop in prices as it is to say there was a 19% drop in prices (as shown by the Nationwide figures above)
 
Haircut said:
In the absence of proper land registry figures for that time I don't think you can give such a sweeping statement.
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the office of national statistics graph I posted earlier shows that there was no overall decline so who's figures to believe ? :confused:
 
Interesting how this is becoming mainstream now!

Some "experts" are saying we will see a 40% reduction over the next 4-6 years or so. One thing is for certain, there are going to be difficult times ahead for those who have stretched themselves with ridiculous mortgage multiples just so they could get on the property ladder.

Also worrying times indeed for those who have withdrawn equity from their houses to fund their expensive lifestyles!
 
I think that the demand for houses is going to remain the same, but what we will probably see in the next year is a reduction in the number of successful mortgage applications either for FTBs or home owners, due to the 'credit crunch' and the increasing reluctance of banks to lend to each other.

Fewer mortgages should mean fewer sales and as a result a slow down in rises.
 
Houses will alywas be in demand, prices are still relative to salaries it's just that this generation have been fortunate to leave relatively easy lives and find paying a mortgage extremely hard.
My fathers first mortgage was £44 a month, he earnt £90 a month at the steel works (quite good pay back then). As a percentage, our house costs the same.
 
HSBC says UK house prices are overvalued by 30%. JP Morgan is saying 24% and the International Monetary Fund says they're 40% too high.

I can't wait until all the amateur buy to let (BTL) people who are subsidising their BTL every month in the hope of capital appreciation finally realise that it is decreasing in value every day. Might take them a while to figure it out but as soon as they realise they are subsidising an asset that is depreciating like a stone it shouldn't take too long to sink in & then they will have no choice but to dump these propertys for whatever they can get. Some will inevitably chase the market down and get badly burnt.
 
I'm about to buy my first house/flat and I'm not looking forward too it! At least here you can get a decent, new, 2 bedroom flat for less than 90k, thats better than a lot of the UK.
 
carpmaster said:
Seems the novice landlords were already beginning to panic sell back in September! No wonder prices have been falling for 3 months in a row now.

http://observer.guardian.co.uk/cash/story/0,,2174919,00.html
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Well pretty much anyone going into buy-to-let in the last year or two must have only been in it for the capital appreciation as rental yields have been dismally poor.
A very risky move IMO.

IMO house prices can and will fall over the next couple of years - supply and demand is all very well, but if banks tighten their lending criteria and stop lending as much money to people then they just won't be able to afford to buy houses at their current prices.
People who can afford to sit it out will do so, but the markey value is determined solely on those who sell, if most people decide to sit it out then only those forced to sell will do so and this will push prices down further.

I think the supply and demand argument is overplayed anyway, in the USA they built 4 million more houses than there were households created from 2000-2005 but still prices doubled in this time.

Worldwide there has been a bubble in property over the last ten years, that's going to deflate in the coming years and we won't be able to escape it.

Anyone want to buy any tulips?
 
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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Hmm. Best off putting your money in the mattress, shurely :D
 
the bubble has been in credit and thats what has caused the house prices to go up so much - that bubble has burst (credit crunch) - house prices are going to drop like a stone - i will bet my life on it (and a significant amount of money).
 
Multistorey blocks of flats went up enmass in the sixties, they moved all the tenants from slum demolition areas & rehoused whole streets into just one block which took up a fraction of the space. The cost of buying such a flat should be cheap when you consider that you would share your floor /ceiling & inner walls with your neighbours.
Many were demolished in later years but maybe this is the way to go as in other 'crowded' islands or more & more countryside will be lost forever
 
Haircut said:
Well pretty much anyone going into buy-to-let in the last year or two must have only been in it for the capital appreciation as rental yields have been dismally poor.
A very risky move IMO.

IMO house prices can and will fall over the next couple of years - supply and demand is all very well, but if banks tighten their lending criteria and stop lending as much money to people then they just won't be able to afford to buy houses at their current prices.
People who can afford to sit it out will do so, but the markey value is determined solely on those who sell, if most people decide to sit it out then only those forced to sell will do so and this will push prices down further.

Agreed. I think the supply and demand argument is overplayed anyway, in the USA they built 4 million more houses than there were households created from 2000-2005 but still prices doubled in this time.

Worldwide there has been a bubble in property over the last ten years, that's going to deflate in the coming years and we won't be able to escape it.

Anyone want to buy any tulips?
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The whole shortage of supply argument is mainly down to the whole BTL growth over the last few years. It's been ramped up by the amount of property programmes on TV and has led to many people stretching themselves to the limit and entering the BTL market.

I've had friends that have done this, and I did my best to dissuade them but when they blindly believe that house prices only ever go up there is no persuading them that it's a very risky investment.

The BTL mortgage lending sector has pretty much dried up overnight now, and it's a dead cert that these people will have no choice but the sell at whatever price they can get. Those who are blinkered to the belief that "it's different this time" are the ones who will end up chasing the market all the way down.

Agreed some who have been in the BTL game for many years might be able to hold tight and weather the storm even with 50% reduction in the value of their portfolios, but I would imagine virtually all of them are highly leveraged and once the market goes into freefall they will attempt to cash in on whatever equity is left.
 
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