Sunday, Feb 25, 2007
The week that was
Firstrung: First time buyers property news, the week in focus - 24/02/07
Firstrung has always urged caution for those expecting a dramatic correction in house prices, our contention has remained steadfast that prices could revert back to 2004 levels as a minimum correction. This would reduce current prices by approx. 22%. However, it must be remembered that even at 2004 prices vast swathes of first time buyers were still locked out of the house buying process, therefore a reduction of 22% would hardly make property widely affordable to the many currently priced out and just how long this correction would take to unfold is anyone's guess...
Posted by converted lurker @ 11:56 AM (186 views) Add Comment
7 Comments
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1. Alan said...
I am working on new housing developments in the North West and for about 9 months now there has been a real slow down in the sale of new houses. Developers have been offering large discounts and incentives and still seem unable to shift their stock. More than likely there will be a slow down in new build properties.
2. japanese uncle said...
Those who rode on the wagon and bought properties in 1992 and 1993 in Tokyo, in the belief that it was about time after nearly 20% 'correction' in the market, bitterly regretted that decision, in view of the further 40% decline in the market in 1993 and onward. Unless you have reason to rush, wait and see is the most reasonable attitude for at least three or four years to come. Let us play there would be a sharp enough correction meanwhile.
3. David20040_0 said...
Slowdowns maybe but crash never
4. enuii said...
A block of 43 apartments near my humble abode in the Northwest has still only seen 15 units sold and there have been no further sales for the last 6 months. Similar blocks of flats are shooting up all over town (warrington) one development overlooking the Ship Canal (Waterside) has 300 units planned and six other similar sized developments have gone up in the last year or so with another two huge developments in the planning stage. Most of the finished developments have surprisingly empty car parks and little if any of the flats are occupied because not many people around here actually aspire to owning one.
It is my belief that their construction has actually been driven by the sheer financial greed of their developers rather than by sound planning.
5. The Baldman said...
David20040 Never say never in a speculative market
6. rich said...
>> David20040_0 said...
>> Slowdowns maybe but crash never
Based on what? A gut feeling? If so, that gut feeling is simply caused by a decade and a half of HPI and is the same gut feeling that everyone else has, which only adds to the case for a crash.
7. C'mon Correction said...
rich - David 20040_0 rarely gives any reasoning to his comments and just states things blindly like above.