House prices fall 2.5% this month now 4.4% cheaper than last year FANTASTIC

[sarkin]

Brilliant fantastic got up this morning to find out that house prices dropped by 2.5% in one month and have now fallen every month for the last 7.

This is brilliant yes,yes,yes.

They only need to fall another 32.5% to be in line with average wages.

looks like there is going to be a reccession and I will lose my job, but not my house.

click here for full report

For those that overpaid sorry but thats life

House price falls are good long-term as otherwise the next generation will get completely priced out of the market (in fact, they have already). It may still be difficult for FTB to get a mortgage, but if they save up a good deposit then there is at least a chance that they can get a house.

All this would be irrelevant of course, if house prices hadn't shot up to such insane levels in the first place, but that's a bubble for you. And of course, it doesn't help the pain of those who bought at the top and might be forced to sell due to debts/divorce etc.

PS I think it's a bit insulting to tell me that I'm "sitting in rented" as though DH and I are vultures circling for the kill! We just want to buy a house to live in, just live everyone else. The difference being that all our friends bought 5-10 years ago, when property was more affordable relative to earnings.

I am quite thick, but does a fall in house prices actually reflect a fall in value, or a fall in the average price of houses sold, or both?

It reflects a fall in the average price that people are paying for a house. But the only way to know the real value of a house is to sell it, because there isn't an actual "value" to anything, is there? The value is only what someone is willing to pay. Does that make sense? So a fall in the prices that are being paid for houses that are sold in your area will almost certainly mean that your house has decreased in value too. But it doesn't really matter unless you are planning to move, or forced to sell the house for some reason.

naughtynoonoo

I only post in this part as it is the only part that interests me, my girlfriend post's on other boards. I did place a link back to my sight once, but have now found better ways of optomising my web site for higher rankings in google IYKWIM. I dont see it as promoting myself unless you know over other brokers that tell you the truth that the market is so screwed to get business.

DaddyCool

I reckon house prices will fall around 35% over the 3-4 years. This will take us back to the long term average, however as the public got spooked with house price rises they will also spook themselves on the way down and over shoot the long term average.

Yes over the long term house prices will rise unless you look at Japan they are still screwed from the last crash. So down 3-4 year flat 1-3 slow rise 3-4 then off we go again. Which means people who have borrowed to much better like where they live as it will be a long time before they get thier equity back.

MrsTittleMouse

Do I feel sorry for your friends no, Its an investment they bought because they thought it was a good idea as house prices only go up. This is the capitalist society we live in winners and loosers. I live in a 2 bed rented when our baby was born we where in a 1 bed flat, but we did use to live on our boat in the med so we can live in confind spaces.

Mrs tittllemouse you should be over the mooon prices are falling unless you like paying to much for something. The more they fall, the bigger your deposit gets, the smaller the mortgage, the quicker you retire to sail off into the sunset or what ever you chose to do with your early retirement.

wonderwomanakaeandh

There are only 2 things wrong with B&B they sold to many self cert and BTL mortgages oh and a 3rd after Northern Rock they were the lender borrowing the most on the markets to fund thier lending. Which is why the people that buy stocks and shares, not the people that right about them price the shares at 92p. for what its worth if you lok at the share price of all the banks and property companys over the last 12 months they have all taken a pasting.

yeah lower prices are great smile

Of course I'm happy for me, but that doesn't mean that I'm not going to worry about friends and family who bought at the peak, does it? They may have made a mistake, but anyone who says that they can predict the market (any market) with anything other than the broadest strokes is lying.

And they bought because they wanted somewhere to live. I have no sympathy for property speculators - if you try to make money on any kind of market you might get your fingers burned, that's the risk. The trouble is that most people who will suffer are people who were trying to do the right thing for themselves and who possibly believed the hype about prices only going up. Just because house prices going down is a good thing overall, doesn't mean that I want to gloat over those people's suffering. And I really do wonder why you do.

Your right no one can predict and it wil be a shame for people, but did they have any sympathy for us when prices rocketed.

sarkin, you started singing your tune 4 years ago. But 4 years is a long time to be WRONG. If someone bought 4 years' ago, they would still be quids in in today's market.

I bought 6 years' ago, and have lots of equity in the house. A house price crash, the deeper the better, will suit me very well, as we are looking to seriously upgrade.

I have just bought at 27% reduction so a crash is coming

The Scottish market is proving resilient as ever.

Not forgetting we are almost back to 2006 prices and this has only just started.

Anyway if your looking for bargains you need to instal this www.property-tools.co.uk/toolbar/download/. It scrapes rightmove data, so you can see when a seller drops thier price

This is one of my favorites

12nd May 2008

• Price changed: from '£225,950' to '£200,000'

2nd May 2008

• Subtitle changed: from '3 bedroom semi-detached' to '3 bedroom house'

1st Apr 2008

• Subtitle changed: from '3 bedroom detached' to '3 bedroom semi-detached'

18th Mar 2008

• Price changed: from '£261,950' to '£225,950'
• Subtitle changed: from '3 bedroom house' to '3 bedroom detached'

4th Feb 2008

• Initial entry found.

I think atm if you can't secure a 15% reduction you have to accept negative equity.Apparently the fall will be to 2003 levels at least.