House Prices on verge of Collapse!
 

Just seen the first signs ..... houses round our way at £400k+ have fallen about 15%!

Lots have been on the market for 8 months+ .... some as long as 18months! :eek:

It won't be long before it filters down to the £250k+ market .... I have been around long enough to see the signs:-

Builders offering to pay deposits, throwing in free carpets .... now they have sliced £100k off their £600k houses!!! Hard nosed builders don't drop prices unless somethings happening in the market!

You heard it here first!

Pete

Estate agents have been over-pricing by 20%, what you will see is normalisation of price.. then growth again next year..


.. until the point comes that *nobody* can afford to buy .. and then it will be the big crash :D

Just got 10k extra on my mortgage to get some building works done.. but to get into negative equity my house would have to fall by over 50% in value.. and I'd still then be able to sell it for what I bought it for :D

The only people with anything to fear are those who already have mortgages that they can barely afford - old addage told to me by my dad : never owe anything that one weeks wages cant cover! Has stood me in good stead so far.

true buzz . yay to multiple properties with 200% equity :D:D

Didn't mean to imply that it was anything for the clever to worry about - I see it as an opportunity to add to the property page of my portfolio. Now to judge when the repossesions start happening in numbers!!

And it WILL happen!

Pete

Of course Pete, the amount of idiots near me that have conservatories and BMW's financed by remortgages is incredible...

pete ya dozy old feker - you have been posting that same thing every three months for the past three years - sooner or later you are going to be right (if you don't die first :rolleyes:)

I jumped the gun 12 months ago and there were no signs (just my gut feeling) - NOW, its ACTUALLY happening!!

Coming to a street near you soon!

Pete

I hope so than I can buy more for less :)

Pete, Retirement flats cost peanuts so you have nothing to worry about :D

I hope NOT - I live in a nice quiet conservation area, and at the tender age of 32 I don't want oiks being able to afford to live down MY Avenue (note it' NOT a "street" ;) )

I was born in this area ( not 400 yards from where I now live) and the LAST thing I want is Mr and Mrs. Council Estate Scum being able to afford to move in next door!

Hold fire pete... it'll be another year yet

UB;)

Coming soon, the end of the world...i can see it now, the sun will give up and we will all frezze.......i guarantee it.....some time....in the next few...gazillion years...coming soon..ish

You beat me to it FB ;)

I think Pete could be right. I was in an estate agent a few weeks ago. The estate agent told me that they would accept £400k for a house listed at £430k. I didn't press for a lower price - he just came straight out and said 400k.

Too much personal information there. Your choice of sexual preference is up to you:D
Alas

unfortunately not in your lifetime, grandad ;)

BB:)

means nothing though...there could be a thousand reasons why that happened.

maybe its a ****e house and not worth £380 let alone £400...in which case a drop of less than 10% is hardly a lot.

maybe the bloke just wants rid of it?

Theres no doubt prices are slidding in North Somerset, I regularly look at the agents prices, and theres a fair number of properties being reduced now - lots down from £425k to £400k.

Also in the last month or so theres been loads of properties come onto the market which can only hurt prices further.

I think one thing that could tip it this time is a clampdown on self-cert mortgages - dont know anyone whos bought and not lied on a self-cert! :eek:

Thing is tho prices have gone up so much that even if they fell 30% they'd still be damn expensive :(

Houses at the top of the market have been static or falling gradually for at least 18 months now. It doesn't mean anything, other than they were over valued in the first place, by gung ho estate agents who suddenly thought that any decent victorian semi in london was worth £1M. Unless interest rates exceed 5% I can't see anything too dramatic happening. It's about supply and demand, innit?

A £25k reduction on a £400k property isn't really that much, is it? It's not even 10%.

Lol
happened to us- next door is now 'chav with a huuuuge mortgage', fresh from the dodgy housing estate on the other side of town.
Still, someone looking like an estate agent took a picture of their house yesterday, so fingers crossed they are selling at the top of the market and we get some nice neighbours again.

Wondered how long it would be before the estate agents got the blame. Vendors usually push the asking price up to unrealistic levels, it's usaully a case of "the one down the road sold for £x and mine is much nicer" or "I want to buy at £x so need to achieve £y on the house I am selling." Spoke to a fellow Estate Agent about a new instruction they were advertising at £45k more than we sold one for two months ago, "vendor valued it not us", was the reply.

Awwwwwwww, poor Estate Agent, FORCED to take an overpriced property on their books :rolleyes:

Estate Agents play a silly game of 'overprice and get the property' - after all, what use is an Estate Agent without houses for sale??

I have sold privately and through an Agent ..... my advice is, in a hot market sell yourself! If its going to take a bit of work, hand it to an Agent.

Couldn't believe how easy it is:-

1. Arrange viewing of house

2. Show buyers around

3. Get offers and decide who you wish to sell to

4. Exchange Solicitors names and off we go

No-one thinks an estate Agent is worth the air they breathe, cruel - but well deserved! :D

Pete

I'm looking at buying a flat at the mo. Do you Reckon I should wait??

Depends where you are really, if you are in the South then the drop will come sooner rather than later.

Its the £400k-£1million market thats getting smashed at the moment .... but, it will filter down - then the ripples will extend outside the South and affect all areas by next Spring.

But, you must make your own mind up, take all the advice and opinions, then form your own and act accordingly!

Pete

I don't think that there is ever a right time to buy a property. I know when I bought my flat back in '97, 'the market is going to crash' was often quoted - you either need to buy somewhere to live or you don't! Even if prices do fall and you are living there (as opposed to using it as an investment), renting will not be cheaper.

both our next door nieghbours have failed to sell there detached 4 bedroom homes, the one on the left has taken it down from the market after about 6/8/10 months

the one on the right has also called it a day and now trying to let it out (and failing) the only people that come to look at it are estate agents lol

Please dont come out with all this now, been renting for 12 years, and finally have decided to buy a flat, went and looked at one today and hopefully going to put an offer in, and its in the South East.
Would not be happy to watch prices crash, as this was going to be a first step type of property, needs a lot of quite basic work, so wanted to do it up and then sell it on to fund a house with a garden, (I really want a garden!!! been years since I had one *sob* :( )

If prices are going to drop significantly, then id hold off buying for a while, I must admit, as a first time buyer, ive been thinking lately how there must be a huge hole developing in the bottom of the market, as I earn a decent salary (more than most of my mates anyway), and yet I am going to have to seriously scrape to be able to afford a decent small place, I cant see how the housing market can continue to be supported when first time buyers cant get in at the bottom!! so have been thinking things may crash, should I buy, shouldnt I....but then as scoob_babe says, there isnt really a perfect time to buy, so I figure take a chance, and find a nice cardboard box if it all goes tits up.

Just think about whats happened - house price inflation of 20%+ per year - 'normal' inflation of 3% ...... pay rises of around 4%.

Even a primary school pupil can see that those sums just do not work out ..... somethings GOT to give.

I just happen to see the beginings of a drop in house prices in the South and in the £400k+ market where I am personally looking for my next property.

I do not want to put anyone off buying their next house now, selling and buying is reasonably ok. Its the FIRST TIME Buyers that, maybe? should tread very cautiously just now?

Just my opinion!

Pete

they allready are tho due to stretching themselves stupid, to buy a ****e small 4 man tent :(