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Is there going to be a house price crash

(22 Posts)
MrsDoolittle Mon 21-Mar-05 20:57:17

Guardian article. An issue close to my heart at the moment and I am just wondering what other peoples thoughts were on this. Up or down, what do you think?

CountessDracula Mon 21-Mar-05 20:59:14

Now, if we knew the answer to that one we could all make a killing

expatinscotland Mon 21-Mar-05 21:01:24

Probably not. We don't have the staggering unemployment that went along w/the last crash. Attenuation perhaps.

Newbarnsleygirl Mon 21-Mar-05 21:01:24

I seriously hope not.

serenity Mon 21-Mar-05 21:04:10

Very very selfishly I hope it does, as that is the only way I can ever really hope of getting out of a too small council place into somewhere of our own

MrsDoolittle Mon 21-Mar-05 21:10:40

I think it is going to tank this year!

CountessDracula Mon 21-Mar-05 21:10:45

I also think that there are more small investors in the market now ie buy to let, who will snap stuff up as the market goes down because rental demand will be going up, that should steady things.

Hulababy Mon 21-Mar-05 21:12:54

From speaking to aquaintances in the business DH thinks there will not really be a massive drop. It sis more likely to just stabalise, and the prices rises in properties will become much less silly than they have been. London and the South will probably notice it much more so than other places too.

WideWebWitch Mon 21-Mar-05 21:12:57

I wish I knew. We are hoping for a crash so we can buy later this year but goodness knows whether it'll happen, I'll be interested to see what mnetters think.

CountessDracula Mon 21-Mar-05 21:14:08

why close to your heart Mrs D?

WideWebWitch Mon 21-Mar-05 21:17:42

MrsDoolitle, have you seen housepricecrash.co.uk?

expatinscotland Mon 21-Mar-05 21:24:52

I don't own a home and deffo don't want to see a crash. A crash would bring about serious ramifications in the economy that would affect us all. Rather just wait my turn, become a qualified solicitor, and then earn enough to purchase a home for my family. It will be all the sweeter then. I'll have plenty of time to think about exactly our needs are in a home.

MrsDoolittle Mon 21-Mar-05 21:27:03

WWW - that's my 'other' forum

MrsDoolittle Mon 21-Mar-05 21:42:46

I keep thinking about it , I guess we are in the same position WWW. Both of us earn above average salaries but a nice FT house would still be well out of our reach. I think we can't be the only ones in this position.
I guess we are thinking conservatively because we have to allow for interest rate rises. I would like another baby and so it is unlikely I will earn anymore than I am on now (I hope) as I would work part-time.
What about the global economy - rising oil prices, China and India growing massively and buying cars? Where is the oil going to come from? What about our scary national debt figure? Bankruptcies hit an all time high at their highest level since records began last year - up 28% on the previous year. There is evidence that we are already going into recession only it hasn't been said yet. The government will do everything that is possible to artificially prop the economy before a general election. Courts has gone bust, Alders have gone into administration, Boots financial director given the push following disasterous figures of late. Peugot shock because they are making redundacies (750) jobs in coventry to go announced today.
Am I just worrying unnecessarily?

MrsDoolittle Mon 21-Mar-05 21:43:24

'Both of us' - I mean dh and I

Mirage Tue 22-Mar-05 10:50:59

I don't know-I've been asking myself the same thing for the past few months.DH who has a background in finance/economics says no,due to low unemployment ect.

We put our house on the market last week,despite the estate agents saying that it wasn't a good time to sell,that the market was stagnant,but we put it on at a realistic price & the 1st person to see it offered just under the asking price.So we 'sold' within 48 hours which gobsmacked me.

We are still getting viewings,despite being under offer,as we don't know what may happen-our buyers may pull out ect.

I think things will slow down & vendors will be forced to be sensible about prices-a house similar to ours,but on a main rd with no parking & a smaller garden is on the market at 17k more than ours.Id be very surprised if they get the price they want.The days of being greedy,thankfully,seem to have come to an end.

bathmummy Tue 22-Mar-05 11:09:08

Problem is that one home is put on at well over anything reasonable and so the home two doors down and same size thinks that they can put it on for the same and seeing as they have nicer wallpaper, pop it on for 5k more...and so the upward spiral of false marketing goes, all without a sale. So, loads of homes up for sale in our area and none budging an inch - crazy world.
Anything up to 200k sells within a week, over 250k and doesn’t move for months, I know of two not sold for over a year (both 5 bed detached and around 300k) and so given up and come off the market (rather than drop than drop the price as need it to get new home)

miranda2 Tue 22-Mar-05 12:20:31

I don't htink they are going to drop, but I do think they may stop rising.

Gobbledigook Tue 22-Mar-05 12:31:27

More like stabilisation of prices rather than a drop as unemployment is still very low. Also, although not great, the rise in stamp duty threshold will help first time buyers which should have a knock on effect eventually helping higher priced properties sell as people move up the ladder.

Prices are definitely holding here, ie not going up - we are now putting a new kitchen into ours to get it to sell but are leaving the price the same.

MrsDoolittle Wed 23-Mar-05 08:35:51

I don't think the rise in the stamp duty thrshold is oing to make a blind bit of difference in the current market actually. Theres not much you can buy for £120K!!!
My friend is buying a one-bed flat for £140 at the moment!!

wild Wed 23-Mar-05 08:38:09

I reckon they will drop

Keane Wed 23-Mar-05 08:43:14

I hope they dont but it shouldnt really make any difference to us really as we are planning not to move, to stay put really forever and ever amen

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