House prices

dal

dal

dal

Associate
Joined
10 Sep 2005
Posts
909
Location
Lincolnshire
Hi all, I've recently seriously been considering putting in an offer on a house but after speaking to a friend that in the past has been quite knowledgable on these matters & after doing a bit of reading up it seems like house prices could drop by around 10 - 30 % this year, I've even heard the housing market will crash in a few months allthough I dont really believe this, with this in mind im going to hang on for 6 months and see what happens.
Whats your thoughts on this.
 
If you see a property you want and are happy with the price buy it.
The same house might drop in value but then more people will want it and you could easily lose put on it.
 
If you intend to buy for the long term I wouldn't really hestitate. It's a buyers market at the moment because of mortgage issues, if there is any short term reduction over the next few years I would slowly but surely expect the prices to rise after that.
 
don hesitate, spring summer tends to attract more buyers, so sellers can hold on , so prices tend to hold.

if you see a house at a reasonable price you can afford, jump n with both feet
 
To be honest, I had the exact same advice when I was buying my house a bit over a year ago now.

I'd agree with what Morba said. If you are buying a place as a home rather than an investment why worry so much. Yes you might get a shaft but thats life. It's either that or hold on forever waiting for "the right" time which will never come as hindsight will not be readily available.

From what I have seem to be on the rise very slightly, calm before the storm, who knows?
 
dal said:
Hi all, I've recently seriously been considering putting in an offer on a house but after speaking to a friend that in the past has been quite knowledgable on these matters & after doing a bit of reading up it seems like house prices could drop by around 10 - 30 % this year, I've even heard the housing market will crash in a few months allthough I dont really believe this, with this in mind im going to hang on for 6 months and see what happens.
Whats your thoughts on this.
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Are you buying to speculate (in the hope of making money) or buying for somewhere to live? If it's the second option and you plan to stay there long term, I wouldn't worry about a decline in prices unless your personal finances are very poor.

Some people have been beating the market crash drum for years :rolleyes:
 
Would be real bad news if I bought a place then 6 months later could have got it £10 k cheaper though. Possible interest rate rises will certainly stop prices increasing though.
 
dal said:
Would be real bad news if I bought a place then 6 months later could have got it £10 k cheaper though. Possible interest rate rises will certainly stop prices increasing though.
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Well, unless you are Mystic Meg, you'll never know what is going to happen and could procrastinate for the rest of your life.
 
dal said:
Would be real bad news if I bought a place then 6 months later could have got it £10 k cheaper though. Possible interest rate rises will certainly stop prices increasing though.
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Why would it be bad news?
 
IMO it all depends on what happens with interest rates.
If the BoE starts to raise rates then it might panic a few people into putting their houses on the market, further subduing prices.
Then increased unaffordability due to higher mortgage costs will also no doubt push a few people into selling their houses.

If that happens I can see prices falling a fair amount from where they are now, however if I could predict interest rate movements to any degree of accuracy I'd be a rich man already :)

At the end of the day a home is to live in and if prices do come down, it just makes the bigger home you'll no doubt be looking at in a few years time a bit cheaper anyway!
If you're ready to buy and you can find somewhere good for your budget then I don't see any harm in doing it, if you try to predict what will happen you'll be forever waiting.
 
The government will intervene to stop house prices falling drastically because so many people have loans taken out against their homes. There'd be chaos.

The government will intervene to stop house prices rising drastically because so many first time buyers are already priced out of the market.

So there's no reason to wait, get your house and enjoy it.
 
Again, echoing pretty sound advice here so far. £10k in the grand scheme of potentially £150k+ worth of mortgage with someone really isn't going to make a difference.

Hence its important to find the right place for you and be happy there for as long as you can forsee.

If I found out now that my house is now valued at £10k less than I bought it for I wouldn't really give two monkies. Reasons being it's my home, I'm there for the predictable/foreseeable future and I like it there. I'm not planning on selling now so what difference does it make if it's not worth as much "in theory"?

If I bought it as an investment then its a different story.
 
Inflation is rising, buy now.

Even a sharp increase in base rates (which won't happen, it will be more gradual) won't kick in for a good 6-12 months.
 
dal said:
Hi all, I've recently seriously been considering putting in an offer on a house but after speaking to a friend that in the past has been quite knowledgable on these matters & after doing a bit of reading up it seems like house prices could drop by around 10 - 30 % this year, I've even heard the housing market will crash in a few months allthough I dont really believe this, with this in mind im going to hang on for 6 months and see what happens.
Whats your thoughts on this.
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I doubt prices are going to drop any further. If they do I strongly disagree with a 30% reduction being likely.
 
#Chri5# said:
Some people have been beating the market crash drum for years :rolleyes:
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Agreed I have heard so many people say this for a few years now. Prices are likey to dip a bit but it will be over months/years maybe and I doubt they will drop by up to 30% anytime soon. The news like to jump all over price drops but tend to leave out the important information like its normal for house sales to drop this time of year etc.

Just look at your area and think if your looking for an investment or to live there. If your looking to live there, you like the area and the house is nice and what your after then go for it. Otherwise its a waiting game with no idea of when or if a drop is going to happen.

The issue is to many people look to buy a place and hope it jumps up by 20% (random figure) a year. This is just luck really so dont hedging your bets as such as it might not work out the way you hope. Dont get me wrong I would love my place to go up by that much but Im happy to play the waiting game currently.
 
billysielu said:
The government will intervene to stop house prices falling drastically because so many people have loans taken out against their homes. There'd be chaos.

The government will intervene to stop house prices rising drastically because so many first time buyers are already priced out of the market.

So there's no reason to wait, get your house and enjoy it.
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I would not be to sure on that, the last government did nothing to stop price inflation. It could be said that they helped it along, maybe this government will help prices to fall.
 
Orcish-Horde said:
I would not be to sure on that, the last government did nothing to stop price inflation. It could be said that they helped it along, maybe this government will help prices to fall.
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I would think that the conservatives would like the house prices to go up keeping the rich ...rich. But thats old thinking coming out again. Ill wait and see who is right though
 
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