HBOS - "House prices down 2.5% in March"

[GreenerGrass]

Oh dear. Deposits of minimum 10% will become the norm, lending multiples to reduce back to historic norms, etc...etc...

On the plus side, interesting rumours of some lenders not selling repossessed houses at auction, and holding them rather than further depressing the market.

[Turion]

More Housing Doom

Nationwide say -1.7% in last quater

http://www.findaproperty.com/display...&storyid=21828

[Cyberman]

Oh dear. Deposits of minimum 10% will become the norm, lending multiples to reduce back to historic norms, etc...etc...

On the plus side, interesting rumours of some lenders not selling repossessed houses at auction, and holding them rather than further depressing the market.

People need to think more long-term. Looking at short-term fluctuations is like watching share prices day by day. Having made over 200% on my house since I bought it, I don't think a few monthly drops is going to make me panic, and whatever values are lost over the next few months will be recovered by rises over the next few years anyway.

[rootsnall]

Oh dear. Deposits of minimum 10% will become the norm, lending multiples to reduce back to historic norms, etc...etc...

On the plus side, interesting rumours of some lenders not selling repossessed houses at auction, and holding them rather than further depressing the market.

There is a local repossession just come on the market via a local estate agent at 'full price' ( ie. the price from 6 months ago ). It's all been done very quietly, it'll be interesting to see how much and how quickly they slash the price to shift it. I'd reckon it needs a reduction of 50K to get below the 250K mark to shift it but !?

[GreenerGrass]

There is a local repossession just come on the market via a local estate agent at 'full price' ( ie. the price from 6 months ago ). It's all been done very quietly, it'll be interesting to see how much and how quickly they slash the price to shift it. I'd reckon it needs a reduction of 50K to get below the 250K mark to shift it but !?

The houses in my area are still asking top dollar, but not selling after months on the market. People do seem to be very reluctant to drop prices by much if anything.
They have got it into their heads the house is worth £X and in most cases will sit tight, or rent it out, unless they absolutely have to sell.
I think this will cap the worst predicted losses, but I can see a 10% drop over the next year in good areas, and 15% in crap areas.

The people waiting for a 40% drop will just miss out yet again and still be renting in 10 years time.

[Churchill]

Nationwide say -1.7% in last quater

http://www.findaproperty.com/display...&storyid=21828

Is that anything to do with mass?

[threaded]

Is that anything to do with mass?

Probably as all that money they think they've made is going to disappear down a pit.

[VectraMan]

The people waiting for a 40% drop will just miss out yet again and still be renting in 10 years time.

Renting is much cheaper than buying now; if the boom does continue for 10 years "missing out" is a good thing.

I wonder how fast prices will drop once everybody stops being in denial about the prices dropping? A house down the street went for £200K in December (which is definitely top dollar). I have to fight the urge to knock on the door, and Nelson Muntz style point and laugh: "Ha ha".

[Moscow Mule]

There is a local repossession just come on the market via a local estate agent at 'full price' ( ie. the price from 6 months ago ). It's all been done very quietly, it'll be interesting to see how much and how quickly they slash the price to shift it. I'd reckon it needs a reduction of 50K to get below the 250K mark to shift it but !?

My mum did this for a living - there's a whole industry based on selling repossessed properties for the banks.

IIRC, she had to get 3 valuations and take the average. It then has to be on the market for 3-6 months before they are allowed to drop the price, even then only by 10%. To get the big drops it has to be unsold for quite a while.

The banks may relax these rules once they start getting lots of property on their books.

[d000hg]

We're planning to sell in the summer once the house is done up. Seriously considering renting... to see what's happening with prices and to save up a big deposit and have more than a few months of contracting to show the mortgage provider.

Just hope prices don't drop too much by the summer