Pre crash house prices

Bang! And the DEMAND is gone.

Slam62 said:
Well imo it's all about the availability of money or the will to drop prices, we are in a kind of lull at the moment no one really sure which way it's all going to go.
Time will tell, if we get real economic growth all will be fine, if we don't and unemployment starts rising then there won't be anything anyone can do.

I have a lot of sympathy though for the first time buyer generation, as a baby boomer, I view current levels of rent and prices as extortionate.

TBH if I was one of them I would seriously consider leaving the country.
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robskinner said:
The average house price is anything upto 40% below this asking price, yikes!
Certainly watching property near me sensible priced houses are selling, those that are refusing to accept house prices are devaluing are just sitting on the market.
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That seems to be the case in my area too. Some houses have been on the market for over a year as the owners haven't lowered the price, whereas the houses that are reduced have been selling within a few months.

Defiant306 said:
The worse is you cant do to much about it, money in banks or in cash under the mattress or in shares its all losing its worth just now. Well that is to the common man not into making money in these areas.
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Gold and silver are what everyone seems to be pouring their money into these days.
 
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Good article that and shows clearly how the break came between a reasonable price to earnings ratio to an unrealistic one.

The sooner prices fall a bit further the more chance of first time buyers jumping into the market.

There IMO is still a big risk of continued price decay and only a small chance of any realistic increase. Unless required I still think people are better off holding off a purchase.

Problem is and report basically says is that unrealistic selling prices are being quoted and I think thats why we see the average asking price going up, ovepriced are sitting on the market and resonable priced are selling hence pushing the average asking up due to more overpriced to realistically priced sitting in agents portfolio. Average selling price is on a slight downward trend.
 
Just look at inflation, wage increases and job creation, things will have to change an awfull lot for HPs to increase.
 
Slam62 said:
Just look at inflation, wage increases and job creation, things will have to change an awfull lot for HPs to increase.
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Yes, historically high inflation (well relatively) was matched with high wage inflation but wage inflation (including bonuses) is about 2% lower than price inflation. Thats for those actually getting wage rises.

This means that the normal inflation devaluing debt isnt happening.

Personally I dont expect to see massive asking price drops, too many just cant and some stubborn who could will only see the others priced higher and think thats the real value. But conversely I think you will continue to see slow downward selling price movement.

When finally interest rate rises happen its going to be a massive risk that those who are currently surviving will stop surviving and bring the market crash then.

I saw a report but cannot find it now that showed the number of people more than 3 months behind on mortgage payments had risen massively but due to the pressure from the Labour government 2 years ago they had not been repossessed. Its also partly the banks not wanting to crystalise that bad debt as well (not all cases but some for sure).
 
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