Well, one things for certain - house prices are almost certain to fall, for at least the next few months.
House prices..
- Thread starter fendi
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Well, one things for certain - house prices are almost certain to fall, for at least the next few months.
Yep, a hell of a drop, but then with the failure of mortgage backed securities it's not suprising
It seems possible (via the online calculators, so not exactly precise) to get a 90-95% mortgage for ~4-4.5x your earnings, which tbh is a sensible mortage, and you'd need to find a house that is cheap enough for that, not far off that in cheltenham at least, give it another 6-12 months and it'd be easily achieveble
For houses to be more affordable, either banks need to start lending stupidly again (which may happen if brown gets his way unfortunately) or house prices need to fall a fair chunk further than they have already, personally I think, barring large scale nationalisation of the banks, the second option is by far the most likely
It seems possible (via the online calculators, so not exactly precise) to get a 90-95% mortgage for ~4-4.5x your earnings, which tbh is a sensible mortage, and you'd need to find a house that is cheap enough for that, not far off that in cheltenham at least, give it another 6-12 months and it'd be easily achieveble
For houses to be more affordable, either banks need to start lending stupidly again (which may happen if brown gets his way unfortunately) or house prices need to fall a fair chunk further than they have already, personally I think, barring large scale nationalisation of the banks, the second option is by far the most likely
Ok not plenty but as I already said, it has tightened it's hard to find any 95% ltv which are higher than 4.5x salary. But there are still enough to choose from and if you have 10% then the choices really shoots up. That's as long as you get accepted.
If you have a good credit rating and the deposit. Less mortgages to choose from, but cheaper houses and thus deposit with repayments you can actually afford is only a good thing.
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Here's December's report from Halifax:
http://www.hbosplc.com/economy/includes/02_01_09HousePriceIndexDecember2008.pdf
Showing another 2.2% fall in December. According to Halifax the average price is now £39,716 or 19.9% lower than the peak in August 2007.
Also remember this -19.9% is nominal, in real terms it's more like 25% down which takes us back to quarter 1 2004.
http://www.hbosplc.com/economy/includes/02_01_09HousePriceIndexDecember2008.pdf
Showing another 2.2% fall in December. According to Halifax the average price is now £39,716 or 19.9% lower than the peak in August 2007.
Also remember this -19.9% is nominal, in real terms it's more like 25% down which takes us back to quarter 1 2004.
2009 and probably 2010 will be a continuation of 2008.
Remember that in the year just passed, it was only towards the end of the year that the preverbial actually hit the fan and panic set in ... now we have doomsday for retailers coupled with mass redundancies being reported with increasing speed.
Anyone thinking that there will be a miracle recovery is either deluded or stupid.
People are of course still buying HOMES, but i think its important to go into these purchases fully aware that you are holding a pair of three's and the grim reaper is holding a straight flush on the bet that your deposit isnt going to be pretty much entirely wiped out within 18 months or less (20% ones).
Remember that in the year just passed, it was only towards the end of the year that the preverbial actually hit the fan and panic set in ... now we have doomsday for retailers coupled with mass redundancies being reported with increasing speed.
Anyone thinking that there will be a miracle recovery is either deluded or stupid.
People are of course still buying HOMES, but i think its important to go into these purchases fully aware that you are holding a pair of three's and the grim reaper is holding a straight flush on the bet that your deposit isnt going to be pretty much entirely wiped out within 18 months or less (20% ones).
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Soldato
I want a house! Holding off slightly is better in the long term though I'm thinking.
Soldato
Constructive.
So I think the question has to be are those who wished for a crash now happy they have their wish, given the financial hardship that has caused it? Are they happy that, even with prices dropping, houses are more unobtainable now than they were when prices were higher, due to lack of mortgage availability?
Is the drop in house prices worth the economic crash that caused it?
Is the drop in house prices worth the economic crash that caused it?
Actually if your looking for a normal multiplier and have a reasonable deposit they are easier to get and you can get a better property. Although this might change as mortgages keep getting withdrawn. However I feel if you're looking for a normal multiplier and a reasonable deposit. Then there will always be mortgages available
Soldato
Yeah, I'm perfectly happy with what's available to me. Just want them to drop a bit more so I don't spend money I don't have to.
You may like to think this, but mortgages in the current climate are not easier to get for anyone, certainly not compared to how easy they were to get.
The number of available products has plummetted, and the acceptance criteria has tightened up massively. Multipler and deposit don't mean anything if your credit rating isn't pristine, and even then, the banks are taking no chances.
There may be mortgages available, but that doesn't mean they are easily obtained.
But they are still available and if you have a good credit rating then you should be able to secure one and as such you can get a bigger/better house for your money.
Assuming your working on mortgage payment per month and not maximum mortgage you can secure.
Assuming your working on mortgage payment per month and not maximum mortgage you can secure.
its not a question of worth, its a question of inevitability. A crash was inevitable, as was a recession - and those that artificially inflated house prices must share the blame. If you didn't see it coming then more fool you.
Most of the people arguing here were 3 years ago saying how good house price inflation etc.. is non saw a crash coming apart from me a another.
95 % of the british pop i can say are fools, you seriously believe that house price rises are good for the economy and for you as an individual, hence the term economic sheep.
Iam sick of people saying are it was due, 3 years ago the same fools were saying it never going to happen, who pay, you pay the working pop pay the MPs and rich folk dont really suffer.
Because of your greed and willingness to screw over people for the most basic right to have shelter you deserve everything you get, you think i'm going to pay for this mess nope, in 1 or 2 years iam off when the tax rises even more.
95 % of the british pop i can say are fools, you seriously believe that house price rises are good for the economy and for you as an individual, hence the term economic sheep.
Iam sick of people saying are it was due, 3 years ago the same fools were saying it never going to happen, who pay, you pay the working pop pay the MPs and rich folk dont really suffer.
Because of your greed and willingness to screw over people for the most basic right to have shelter you deserve everything you get, you think i'm going to pay for this mess nope, in 1 or 2 years iam off when the tax rises even more.
I did see it coming, I always said that house prices would only crash with a large external shock to the market, and that it was undesirable.
House prices dropping a consequence, not a cause, of the problems, just as large parts of their rise were the result of misregulation encouraging bad banking practices because the government of the US encouraged banks to offload their risk to someone else...
The question was posed to those who wished for a house price crash thinking it would enable them to get a cheap house, ignoring the fact that it wouldn't happen in isolation, and the only reason prices would crash would be if some significant economic factor reduced demand (such as the chronic lack of mortgage availability), so those cheap houses wouldn't be any more obtainable for the vast majority.
But most of those predicting doom and gloom were doing it with incorrect timescales (those saying the market would continue rising three years ago for 12 months were right, those saying the market was going to crash within 12 months were wrong), and furthermore most of them completely missed the cause, expecting it to come from within the housing market due to interest rate rises...
I don't recall anyone predicting what is actually happening 3 years ago.
yes iam over the moon, unobtainable for who? not me i have a large deposit very large, i saved while you all spent and sold homes to each other, i just sat in the sidelines watching the fools rack up massive debts and enjoying their time.
Now it my time to party and pick up the pieces cheap prices, while they still owe the mortgage company money.
Not my problem same as it wasnt there problem when they priced out a lot of other individuals, someone even quote me "work harder" haha so funny now.