House Prices Now At 2004 Levels
#1
House Prices Now At 2004 Levels
House prices 'fall to 2004 level'
The average price of a UK home has fallen to levels not seen since August 2004, according to the Halifax.
Prices declined by 2.2% in December, to bring the average cost down to £159,896, the lender said.
For 2008 as a whole, prices fell 16.2%, the biggest annual decline since Halifax began keeping records in 1983.
With further falls to come this year of around 15%.
Nationwide has said that it will not pass on any further interest rate cuts .... and Bankers state that lending will be harder to get through 2009 than it was in 2008!
Personally, the lower property prices fall, the happier I will be
The average price of a UK home has fallen to levels not seen since August 2004, according to the Halifax.
Prices declined by 2.2% in December, to bring the average cost down to £159,896, the lender said.
For 2008 as a whole, prices fell 16.2%, the biggest annual decline since Halifax began keeping records in 1983.
With further falls to come this year of around 15%.
Nationwide has said that it will not pass on any further interest rate cuts .... and Bankers state that lending will be harder to get through 2009 than it was in 2008!
Personally, the lower property prices fall, the happier I will be
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#6
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Got a long way to fall yet
http://www.tutor2u.net/blog/files/house_prices_feb.gif
http://www.economicshelp.org/uploade...erm-727829.jpg
TX.
http://www.tutor2u.net/blog/files/house_prices_feb.gif
http://www.economicshelp.org/uploade...erm-727829.jpg
TX.
Last edited by Terminator X; 02 January 2009 at 03:41 PM. Reason: added 2nd image
#7
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BTW I remember reading that the av house price is guesstimated to be £600k+ in 2021 ...
Those that have been holding off buying for 10yrs or so waiting for the crash better judge it just right!
TX.
Those that have been holding off buying for 10yrs or so waiting for the crash better judge it just right!
TX.
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#8
I predicted this massive correction a couple of years ago - we are now at values last seen over 4 years ago ...........................
#9
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Pete, you "predicted" it in 2000 and every year since
Waiting 8 years to be right, you could have bought and sold on the rise and before the fall and already cleaned up like i did if you'd been more on the ball
Now you'll just be scrabbling around for crappy repo's along with every other chancer
Waiting 8 years to be right, you could have bought and sold on the rise and before the fall and already cleaned up like i did if you'd been more on the ball
Now you'll just be scrabbling around for crappy repo's along with every other chancer
Last edited by Nat; 02 January 2009 at 04:00 PM.
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Looking at YOY falls, the decline increased towards the back end of 2008. I predict another 20% off this year, as repo's kick in, caused by rising enemployment and lack off affordable mortgages.
Maybe the bottom of the market will come in 2010. But I doubt it. We could see > 50% off peak by the end of 2010.
I'll be looking to buy post 2010, but will want to see about 6 months worth of flat house prices before jumping in.
Maybe the bottom of the market will come in 2010. But I doubt it. We could see > 50% off peak by the end of 2010.
I'll be looking to buy post 2010, but will want to see about 6 months worth of flat house prices before jumping in.
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"I predicted this massive correction a couple of years ago"
This garbage is so pathetic it borders on the offensive - which of course is the whole idea.
How these trolls get away with it is beyond me.
This garbage is so pathetic it borders on the offensive - which of course is the whole idea.
How these trolls get away with it is beyond me.
#13
it doesn't matter how much anyone's house is worth, as long as the can afford the payments - it's not a liquid asset!
it's not been in most peoples' interests for properties to go up in value - the more yours goes up, the more a) you kid yourself you're better off (you're not) and b) the bigger the gap to a bigger house should you have aspirations on trading up one day.
it's not been in most peoples' interests for properties to go up in value - the more yours goes up, the more a) you kid yourself you're better off (you're not) and b) the bigger the gap to a bigger house should you have aspirations on trading up one day.
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TBH who cares unless you are being forced to sell it ???
If you have bought a house in the last couple of years, and unless you have a very short time to go on the mortgage, it will be worth more than you paid for it when the mortgage ends, even taking into account the interest you have paid.
Then minus what it would have cost you to rent a house for the last 25 years, which would have been the alternative as you have to live somewhere, and you're even more on top.
Property is one thing that it is very hard to lose money on as a long term investment. Short term I agree that people arent going to be able to make a quick buck like they have done in the last few years just by buying a house and sitting on it and reselling 6 months later.
If you have bought a house in the last couple of years, and unless you have a very short time to go on the mortgage, it will be worth more than you paid for it when the mortgage ends, even taking into account the interest you have paid.
Then minus what it would have cost you to rent a house for the last 25 years, which would have been the alternative as you have to live somewhere, and you're even more on top.
Property is one thing that it is very hard to lose money on as a long term investment. Short term I agree that people arent going to be able to make a quick buck like they have done in the last few years just by buying a house and sitting on it and reselling 6 months later.
#16
The Property Ladder programmes illustrate the decline perfectly. 12+ months ago people were kidding themselves that they had 'added value' by doing places up ..... when, in reality, all they were seeing was the climb of the general house prices!
The later programmes are showing that people are now making losses very easily ...... now is not a good time to buy and 'do up to sell' ...... it could, however, be a good time to buy if you want to keep for the long term.
The later programmes are showing that people are now making losses very easily ...... now is not a good time to buy and 'do up to sell' ...... it could, however, be a good time to buy if you want to keep for the long term.
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#18
Depends on where you live in the country, Up here in Aberdeen we have seen around a 2.1% fall from its peak.
So nothing to shout home about and levels are back at Sept 2007
Factor in how much you may have blown in rent and compare it against the 2.1% the houses have generally fallen by, then its not all bad news for everyone.
So much variation all around the UK, its stupid to state prices have fallen back to 2004 as a whole, Not you PSL, the press in general.
So nothing to shout home about and levels are back at Sept 2007
Factor in how much you may have blown in rent and compare it against the 2.1% the houses have generally fallen by, then its not all bad news for everyone.
So much variation all around the UK, its stupid to state prices have fallen back to 2004 as a whole, Not you PSL, the press in general.
#19
#20
I personally think a singular average wage should buy a 2bed flat and a couples annual wage should buy the average home.
Average annual income is reported to be £37k, multiply this by 3.5x and you get £130k, add the 10% deposit they will have saved and house prices should be around £145k.
C&G are currently still offering 5x joint so lending is not being restricted much.
#21
Recent report by ONS that surveyed just over 20m employees P60 so data i would say is accurate.
#23
Interesting quote here:-
"Forecast change in house prices across the UK for 2009:
London - 12.2%
South East - 9.6%
South West - 8.4%
Yorkshire - 10.5%
East - 11.6%
West Midlands - 9.6%
East Midlands - 9.4%
North West - 10.1%
North - 5.9%
Scotland - 4.6%
Wales - 13.8%
Northern Ireland - 31.6%
UK - 11.0% "
Source: Knight Frank
"Forecast change in house prices across the UK for 2009:
London - 12.2%
South East - 9.6%
South West - 8.4%
Yorkshire - 10.5%
East - 11.6%
West Midlands - 9.6%
East Midlands - 9.4%
North West - 10.1%
North - 5.9%
Scotland - 4.6%
Wales - 13.8%
Northern Ireland - 31.6%
UK - 11.0% "
Source: Knight Frank
#25
Average salary details found here..
http://www.statistics.gov.uk/downloa...08_work_la.pdf
Download table 7.7
Very good as it shows you PT/FT, female, male, and also shows you by individual towns, cities and areas as a whole.
20m or so jobs analysed so i would say a pretty good indicator
http://www.statistics.gov.uk/downloa...08_work_la.pdf
Download table 7.7
Very good as it shows you PT/FT, female, male, and also shows you by individual towns, cities and areas as a whole.
20m or so jobs analysed so i would say a pretty good indicator
#26
Cookstar - Depends upon the rental sector .... that is now swamped and rents are falling.
No point at all in buying a depreciating asset and leaving it empty while it sucks your bank account dry!
No point at all in buying a depreciating asset and leaving it empty while it sucks your bank account dry!
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Biggest reduction I've seen on a house is fixed price of £400k down to £350k and its still not selling. Nice house, good location aswell.
Last quarter selling prices will be published this month, which will make interesting reading.
Oil at $40 a barrel aint going to help.
#30
I have my eye on a property which was placed on the market at an asking price of £349,950 in July 2008.
It is now on at £209,950 .... and has been for about 5 weeks now, not sold - another agent has now been employed in a desperate attempt to sell it ... probate sale.
just 6 months ago it would have been snapped up at £209,950 if not more - it shows the sign of the times that it sits there, empty. It is generating interest as it is nicely situated in an expensive part of the UK .... but, it will only sell if a low offer is accepted.
It is now on at £209,950 .... and has been for about 5 weeks now, not sold - another agent has now been employed in a desperate attempt to sell it ... probate sale.
just 6 months ago it would have been snapped up at £209,950 if not more - it shows the sign of the times that it sits there, empty. It is generating interest as it is nicely situated in an expensive part of the UK .... but, it will only sell if a low offer is accepted.