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Original poster

"More people want house prices to fall than to rise"

143 replies

southutsire · 12/05/2008 11:48

House prices

As a wannabe first-time-buyer obviously I am pleased with the current turn in the market... but am surprised at this. Just wondered if it's really true (obviously MN is a far more scientific barometer than a survey )

OP posts:

Chequers · 12/05/2008 19:38

Message withdrawn

Chequers · 12/05/2008 19:40

Message withdrawn

noddyholder · 12/05/2008 19:41

I didn't mean it like that at all.Years ago they used to sit you down and say that falling prices could result in blah blah happening but they don't seem to now and tbh there was a whole host of new mortgages taken out on low fixed rates while property was on what seemed like a never ending upward spiral and believe it or not many people had no concept of a crash.Many people are now saying they didn't consider the markey changing when they decided to buy and fix their rate.I know many in your shoes atm and really feel for them so shall avoid you like the plague in future

Chequers · 12/05/2008 19:44

Message withdrawn

Upwind · 12/05/2008 19:45

Thanks Chequers - there will be an awful lot of people in your shoes. It might have been us if we could have afforded it!

It was me who asked if the bank warned about the risks, and it was a genuine question. With 2.5 x salary you are in a much better position than most. I wouldn't worry about it until closer to the time you have to remortgage - there are so many things that could change between now and then.

Upwind · 12/05/2008 19:47

Than most recent buyers that is, must learn to preview posts!

I still think the media and the government should be hanging their heads in shame for doing nothing but cheerleading about unsustainable house price increases.

Chequers · 12/05/2008 19:48

Message withdrawn

Chequers · 12/05/2008 19:49

Message withdrawn

aintnomountainhighenough · 12/05/2008 20:15

This clearly does depend on what position you are in personally. I do want prices to drop because I am in a good position and I can see how it will be good if they do. Although as another poster has said the knock on effect of this is huge for government and therefore all of us. However overall I want prices to drop so that hard working people can afford their own homes.

edam · 12/05/2008 20:22

I think dh and I are lucky that we have quite a lot of equity in our home, so can sit out any falls in price - and if we do need to move, the houses we look at will have fallen too. However, if people start losing their jobs and can't meet their mortgage payments, it's really going to hurt. And dh has been off work sick for a while now, on stat. min., so I'm scared about actually paying the damn mortgage.

ReallyTired · 12/05/2008 20:37

If house prices could fall without anyone getting reprocessed it would be good for the country.

We can't move because we can't afford the next step up and because we are not moving our house is not available to first time buyers.

I would like to see laws controlling how much banks are allowed to lend to people, I think it would stop the boom and bust cycle where people borrow crazy amounts and then get reprocessed when mortage rates rise.

kiskideesameanoldmother · 12/05/2008 20:41

if no one yet has said this:
someone on the beeb this weekend said that the million £ houses have dropped 15% but the houses in the £200,000 range has only dropped 3% - on average. so you can get a million£ house for £850,000. dunno if that is any good that is to 98% of us though.

Upwind · 12/05/2008 21:21

Did anyone see the programme on BBC2?

Sort of reassuring really.

Maybe moving to Milton Keynes might be the answer

Chequers · 12/05/2008 21:31

Message withdrawn

Upwind · 12/05/2008 21:34

They talked to people in all kinds of positions re the housing market and sort of worked out why most of them did not have much to worry about.

Milton Keynes the 4th town in the UK least likely to see falls apparantly So they went there and the locals interviewed all said how lovely it is

Chequers · 12/05/2008 21:34

Message withdrawn

morocco · 12/05/2008 21:46

I'd like prices to not drop too much before next july so I can remortgage, seeing as we have our fixed rate with northern rock whose svr is now deliberately set high to get people to change mortgages. that's one thing I didn't see coming
we're not planning on moving any time soon so apart from that it doesn't really matter.
wish I'd got a longer fix on the mortgage though, I wanted to but advisor didn't reckon it was a good idea. shouldn't have listened

FreddysTeddy · 13/05/2008 08:39

Upwind - 10 year fixed rates are not very common these days, plus you pay a huge premium for them. Without the benefit of hindsight they are not a particular good option (hence there not being many around). Also, many people move in less than 10 years and would need to pay a fee to get out of their fixed rate.

Your point about being able to afford a bigger property if prices drops is also null when you try to apply it to someone who only owns 10 per cent of their current property. How are they supposed to move somewhere bigger when their deposit has been diminished by the falling prices, and they would need a bigger deposit to take on a larger mortgage anyway?

The usual flawed logic, and I'm sorry to say it, typical of someone who is a "have-not" in the housing market always assuming that they have it worse off than anybody else.

noddyholder · 13/05/2008 08:42

Those stats on that show said that prices would need to drop 40% before negative equity became problematic but they only included mortgage figures and not any equity withdrawn from houses/remortgages which is where the problem lies imho.Many people did originally take out a sensible amount but have taken out 'their' money as prices have risen and now owe a lot more.

FreddysTeddy · 13/05/2008 08:44

Problematic for who? The majority who are already sitting on a lot of equity.

Plenty of people scraped together a 10 per cent deposit and bought recently. Negative equity will be a problem a lot sooner for those people than others who bought earlier.

yurt1 · 13/05/2008 08:56

Round here its the second homers who are a major problem. This is the area with the biggest gap between wages and house prices, with the average house price 12 times the average salary. I've been to villages wiped out by second homes. Something should have been done about that along long time ago. It's too late now.

chisigirl · 13/05/2008 09:06

From a selfish perspective, I'd like prices to drop. In my dream world, I'd like to think that one day we could move up the property ladder and that won't be possible if prices stay as they currently are.

From a more altruistic p.o.v, I'd also like them to fall. many rural dwellers can't afford to buy in the villages in which they were brought up as prices have been bid up by 'outsiders' buying up properties.

noddyholder · 13/05/2008 09:14

I think they were implying that it would take that drop to be problematic for a significant number ie comparable to the last crash.It is only a problem for those with bug equity if they have earmarked their money for retierment or business.

chisigirl · 13/05/2008 09:15

oops, sorry, x-posted with yurt1

FreddysTeddy · 13/05/2008 09:18

Thank you for qualifying your statement noddy. Those kind of silly sweeping statements are not very helpful.

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