people still dreaming about house prices

[contractor79]

I think the housing market will continue to fall possibly another 30-40%. But still this will not cause some people to accept the revised values of their properties nor their irrational faith in the housing market as being "a good time to invest" no matter what the prices are, where in the cycle it is etc. Women in particular suffer from this problem.

I'm sick and tired of all these people who are still clinging onto a dream that in reality has died for another generation. Do they really think that someone will come along with £200k+ for their little 2-bed flat in the next... 10 years? Do they really think house prices will go up, and up, and up, whilst everything else goes down and down and down? When people are struggling to even get a bank to lend them money for a mortgage? When banks won't for a long time be lending people more than the traditional lending salary multiples?

I've given up advising people to be careful of the housing market. If they really think the housing market is a great place to get into I'm going to refrain from comment. They will only learn the hard way.

[Stan.goodvibes]

But on the other hand...

At least with property you can actually see your investment. Sure it may go down, maybe even into negative equity, but as long as the mortgage is being paid, it'll either go up in value eventually or you will still end up with an asset thats worth something.

Unlike, say, bank shares. Or shares in general that are at the whim of traders and speculators, and all it takes is a few Dick Fuld - type executives and your shares can end up worthless. Thats pretty difficult to do with property.

Good quality property in growth areas that is leveraged properly (i.e. NOT negatively geared) is still a good investment. And like any investment it pays to avoid following the pack and let sentiment into your decision making. Buy when the market is low, and hold onto the properties for the VERY long term (never sell).

The next couple of years will be a great time for prudent investors to buy property, admittedly gaining from others foolishness, but the world is ever thus.

After what we've seen in the last few weeks, i wouldn't trust a banker to sit on the loo the right way, let alone give them my money.

[Stan.goodvibes]

Women in particular suffer from this problem.

*checks to see if I accidently set the Tardis to 1978*

[The Lone Gunman]

I think the housing market will continue to fall possibly another 30-40%. But still this will not cause some people to accept the revised values of their properties nor their irrational faith in the housing market as being "a good time to invest" no matter what the prices are, where in the cycle it is etc. Women in particular suffer from this problem.

I'm sick and tired of all these people who are still clinging onto a dream that in reality has died for another generation. Do they really think that someone will come along with £200k+ for their little 2-bed flat in the next... 10 years? Do they really think house prices will go up, and up, and up, whilst everything else goes down and down and down? When people are struggling to even get a bank to lend them money for a mortgage? When banks won't for a long time be lending people more than the traditional lending salary multiples?

I've given up advising people to be careful of the housing market. If they really think the housing market is a great place to get into I'm going to refrain from comment. They will only learn the hard way.

Well actually the house is worth what the owner is willing to accept when they sell it. If they don't need to sell it they can believe it is worth millions.
There is currently no housing crash there has just been a drastic slowing or in some places halting of the market. There are always a few houses being sold. The few that are selling are doing so because the owners want rid or can not service their mortgages (which there will always be a few of). The rest of the market is sitting tight. Very few houses are being sold, very few mortgages are being offered, the market has stopped. That is not a house price crash as is being reported.

[DimPrawn]

Well actually the house is worth what the owner is willing to accept when they sell it. If they don't need to sell it they can believe it is worth millions.
There is currently no housing crash there has just been a drastic slowing or in some places halting of the market. There are always a few houses being sold. The few that are selling are doing so because the owners want rid or can not service their mortgages (which there will always be a few of). The rest of the market is sitting tight. Very few houses are being sold, very few mortgages are being offered, the market has stopped. That is not a house price crash as is being reported.

That's because we are missing the one ingredient that causes a housing crash, mass unemployment. How many people can sit pretty with almost zero income for a long period of time?

You are right, there isn't a crash yet, the housing market has stalled. But the unemployment figures are going to double and double again, very shortly. Then we'll see what a crash really looks like.

Doomed.

[rootsnall]

You are right, there isn't a crash yet, the housing market has stalled.

It's gone down 10%+ in a year and showing no signs of stabilising. Looks like we are a year into a crash to me !

[VectraMan]

My Mum (who literally is Worcester Woman) and Step-Father sold their house recently in no time at all, and found a new one to buy. 4 weeks to go until moving and the buyer decided to try to drop the offer by £20K. They told him to sod off, and are now somewhat pissed off.

I guess this sort of thing is happening all the time at the moment, which makes it harder to pin down exactly what prices actually are.

[DimPrawn]

It's gone down 10%+ in a year and showing no signs of stabilising. Looks like we are a year into a crash to me !

The average price is meaningless really.

New build flats in city centres have probably dropped 50%, and houses at the top end have gone up 10% in the last year.

House in the mid-range (like £500K to £1M) are probably static.

[rootsnall]

The average price is meaningless really.

New build flats in city centres have probably dropped 50%, and houses at the top end have gone up 10% in the last year.

House in the mid-range (like £500K to £1M) are probably static.

Have you forgottten who you logged in as today ?

[DimPrawn]

Have you forgottten who you logged in as today ?

No, I'm looking to buy a property at around £700K mark, and was hoping to pick up a million pound house that has fallen due to the property crash.

However, no one is interested in offers and everyone seems quite happy to wait as long as it takes to get full asking price.

The Credit Crunch has not affected reasonably wealthy people whatsoever.