Tuesday, Jun 17, 2008
How sentiment has changed in a just a few months
Mirror.co.uk: The house price slump.. one street tells its story
For hard-pressed homeowners the news just keeps on getting worse.
The value of your home could tumble by as much as 30 per cent, according to the latest research.
And experts are warning that house prices could take up to four years to climb back to 2007 levels.
It's yet another blow for families already struggling to meet rising mortgage repayments, needing to move or at risk of falling into negative equity.
Posted by housebear @ 08:57 AM (638 views) Add Comment
10 Comments
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1. mark wadsworth said...
30 per cent! Woo hoo! Self-fulfilling prophecy! And don't forget, every 1% drop = another 100,000 in Nequity (TM).
2. Sold My Soul To The Never Never Never said...
House prices to jump back to 2007 levels in four years time - 2011? I don't think so - maybe 2017 (and that's an optimistic guess). You only have to look back to 1989 - the crash started then and it certainly wasn't all hunky dory by 1993 - that was when it bottomed out. This crash will be far worse than 1989 when you take all the factors into account - BTL's; credit crunch; excessive lending multiples and the amount of speculating to accumulate that has taken place these last 10 years
3. captain sensible said...
I hope that the waitress in this story is better at calculating her tips than she is at house prices. She reckons that she could rent her property out for about 200pm mor than the mortgage - so assuming no other expenses just over 6k profit in three years. In that time, this story predicts that her property could drop in value by 30% - over 60k. With levels of public numeracy like this, no wonder the bubble grew for so long.
4. icarus said...
mmm - one bought a semi in this street for £8.5k in 1975 and another bought a semi for almost twice as much - £16k - in 1961. The journo presumably didn't have the time to explain this apparent anomaly.
5. icarus said...
....they bought for 'just £16,000' in 1961. "Just" £16,000? I'm guessing, but I'd imagine that was about 6x average salary.
6. jack c said...
£16K in 1961 was an enormous amount of money - to put this into perspective my parents bought their first house around this time and paid £600 (Six hundred) for a 3 bedroom terraced !!
7. Mark Wadsworth said...
£16k adjusted for wages growth = £556,000 by 2006, so this figure must be wrong. They probably meant £1,600 purchase price back in 1961.
8. d'oh said...
I suspect it was £1.6k, and the journalist couldn't get their head around that small amount of money...
9. Ah-so said...
£16k in 1961 would have bought the whole street!!
10. Beaufoy said...
Four years to recover to 2007 levels;I think not the last crash took over 10 years to return to pre crash values,this one will probably take longer