House Prices in Freefall in USA
14 March 2007, 07:19 PM
#1
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House Prices in Freefall in USA
What happens there, happens here, as long as you have a hole in your ****
Get your spare cash ready to mop up the property of those who have stretched themselves too far!
Get your spare cash ready to mop up the property of those who have stretched themselves too far!
14 March 2007, 07:24 PM
#3
hmm,cant see it over here myself.
what with the demand a house "worth" 150k today cannot be worth 100k next week or next year,i know its happend before but so did the plague
what with the demand a house "worth" 150k today cannot be worth 100k next week or next year,i know its happend before but so did the plague
14 March 2007, 08:19 PM
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But freefall implies they're going down?.... all those estate agents, mortgage lenders and vested-interest property programmes say property only goes up though I'm confused?? 
I wonder how long UK banks will continue high risk lending - lending 5 x salary, 100% mortgages, self-certs etc etc... when this starts happening lets see how well prices here stand up
I wonder how long UK banks will continue high risk lending - lending 5 x salary, 100% mortgages, self-certs etc etc... when this starts happening lets see how well prices here stand up
14 March 2007, 08:24 PM
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Dave
14 March 2007, 08:45 PM
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Hutton, there seems to be a USA wide problem. Sub prime lenders are up **** creek, thats why we've seen the dip in the Dow. Things are looking really bad over the pond
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14 March 2007, 08:47 PM
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14 March 2007, 08:48 PM
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The difference between us and the US is that they have thousands of square miles of building land and no houseing shortage. Here on the other hand, we're on an overcrowded island and running out of space in the bigger urban areas. Totally different market.
14 March 2007, 08:57 PM
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Also REV, we have a whole raft of pretentious psuedo-middle class sheep inflating property prices by buying anything they can with BTL mortgages.....
14 March 2007, 08:57 PM
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Something like 4% of land is built on - there is still a significant amount of home-building going on - especially on brown-field sites over the last few years (Bristol, Leeds etc have 10's of thousands of new city-centre flats)
Ok immigration is high, but so is emigration which tends to be by professional families, so the couple with a baby in a 3bed house are replaced by a 4 or 5 immigrants sharing the same house.
Inability to borrow vast sums will what drives down prices anyway. Just look at what happened in Japan if you want a good example of a housing shortage not preventing crashes (they really do have a shortage, but still stuffered a massive crash)
Last edited by Petem95; 14 March 2007 at 09:00 PM.
14 March 2007, 08:58 PM
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Great news though if it does come over here as I sold and am renting at the moment.
And if this is true then Richard Hammond was right to sell his house and rent.
14 March 2007, 09:18 PM
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One thing that may just slow it down a bit is this new regulation that comes in in June where sellers have to have a pack put together containing certain info including searches before they can even market their property and this pack is currently being estimated at costing around the £500 mark. £500 up front before you even have a buyer is not exactly an incentive to want to move house.
14 March 2007, 09:51 PM
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This is what estate agents would like to believe, but IMO its just not true, and not a reason to prevent a significant fall in prices.
Something like 4% of land is built on - there is still a significant amount of home-building going on - especially on brown-field sites over the last few years (Bristol, Leeds etc have 10's of thousands of new city-centre flats)
Ok immigration is high, but so is emigration which tends to be by professional families, so the couple with a baby in a 3bed house are replaced by a 4 or 5 immigrants sharing the same house.
Inability to borrow vast sums will what drives down prices anyway. Just look at what happened in Japan if you want a good example of a housing shortage not preventing crashes (they really do have a shortage, but still stuffered a massive crash)
Something like 4% of land is built on - there is still a significant amount of home-building going on - especially on brown-field sites over the last few years (Bristol, Leeds etc have 10's of thousands of new city-centre flats)
Ok immigration is high, but so is emigration which tends to be by professional families, so the couple with a baby in a 3bed house are replaced by a 4 or 5 immigrants sharing the same house.
Inability to borrow vast sums will what drives down prices anyway. Just look at what happened in Japan if you want a good example of a housing shortage not preventing crashes (they really do have a shortage, but still stuffered a massive crash)
A whole different kettle of fish to the UK.
Similar in the USA - since Bush II there has been a massive, massive, massive devaluation of the US economy through national debt and trade deficit.
In the UK leverage has not beyond historic bounds and demand has continued to outstrip supply. An adjustment, yes possibly especially if equities show any strength in their recovery, but like the US and Japan, very, very unlikely as the fundamentals are just not the same.
Rannoch
14 March 2007, 10:40 PM
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14 March 2007, 10:49 PM
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land to build on is so hard to find now thats why the prices are so high in the uk, i was searching for a building plot for nearly a year and they just wasn't around, look at any new buying site like redrow, persimmon etc and those houses are all top prices yet sell before the houses are even built, i've got a building plot now with detailed planning granted on it but it wasn't easy to find and thats why house prices will stay high and even increase
14 March 2007, 11:38 PM
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15 March 2007, 12:02 AM
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I could well believe 75% of all London property (commercial and residential) is rented out.
15 March 2007, 09:10 AM
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And of course the stock market is feeling rock solid at the moment because it doesn't give two hoots about America and its economy.
I like the chaps comment at the bottom.UK's market could be cosidered sub prime lending too
FTSE drops to lowest since October on US fears-Business-Markets-TimesOnline
I like the chaps comment at the bottom.UK's market could be cosidered sub prime lending too
FTSE drops to lowest since October on US fears-Business-Markets-TimesOnline
15 March 2007, 09:29 AM
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16 March 2007, 08:35 PM
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