Thursday, Aug 21, 2008

Fun online poll

Pollcode.com: How much will house prices drop from 2007 peak?

This is just a straw poll, which we can run again in a few months time.

Posted by mark wadsworth @ 08:45 AM (973 views) Add Comment

19 Comments

1. honest valuer said...

looks like the majority so far is 30%. I voted 40% because there was not a 45% option.

Thursday, August 21, 2008 09:00AM Report Comment
 

2. jack c said...

Good post Mark - my estimate is 50% off peak

Thursday, August 21, 2008 09:11AM Report Comment
 

3. harold said...

Nice one Mark. I went -60%; perceptions count!

Thursday, August 21, 2008 09:36AM Report Comment
 

4. handle_it said...

Earnings will drop significantly in my opinion. So the question of how far they fall and how much we earn is more relevant. I wouldn't be surprised at 60-70% in certain areas. 1 bed new-builds 80%.

Thursday, August 21, 2008 09:43AM Report Comment
 

5. japanese uncle said...

Anyone who set up this survey may be aware of the possibility that the drop could well be extended beyond 60%, but too scared to call up the deveil. Why 60% ceiling? The scale ranging from 30% to 80% should have been provided.

Thursday, August 21, 2008 10:00AM Report Comment
 

6. titaniccaptain said...

Nice one MW will be good to keep a regular poll going....say every 3 months.................I voted 60% but I would of voted at 80% if the option was there

Thursday, August 21, 2008 10:07AM Report Comment
 

7. sold out said...

i am going for between 50% and 55%.From the peak to trough in 2010/2011.
Incidently chaiman of Perrsimmon was being interviewed on bbc this morning, he was saying that he believed they had reached the bottom allready,deluded fool.

Thursday, August 21, 2008 10:11AM Report Comment
 

8. sold 2 rent 1 said...

JU,

Why stop at 80pc limit?
Why not have an "end of money" option?

You need to stare into the abyss before you can see global enlightenment.

Thursday, August 21, 2008 10:12AM Report Comment
 

9. beartil2010 said...

I voted 40% because I just can't believe it could be more, I want it to be 50% but I would just cry with happiness at being able to afford a nice home! I'm 32 and been working my ar*e off and saving for 9 years, I live in London and earn well and can't afford more than a small flat. Roll on 60% !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thursday, August 21, 2008 10:17AM Report Comment
 

10. mark wadsworth said...

JU, I set it up.

Next time round I'll include 70% and 80%. (10% and 20% were in there for a giggle, we've passed 10% and are heading for 20% in the next few months).

Thursday, August 21, 2008 10:27AM Report Comment
 

11. Kruador said...

Needs to be more than 60% to return the average price to 3.5x median annualized pay, when considering all workers, not just those full-time workers on annual salaries. That average would be £68,500. I don't think many commenters are aware of the distribution of pay in this country. I'm a software engineer, and paid probably average or worse than average for my seven years of experience, but I'm still well within the top 20% of earners in the country. 25% of earners earn less than £11,960 per year.

On this basis, at peak, the multiple was 9.7 times median salary (taking peak to be £189k and median pay to be £19.5k). That's how completely ridiculous it got.

Figures from the Office of National Statistics' Annual Survey of Hours and Earnings, table 1.1a, at http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2007/tab1_1a.xls.

Thursday, August 21, 2008 11:15AM Report Comment
 

12. matt_the_hat said...

Are we talking real or nominal cos I think the government is trying to inflate its way out of the sh%t

Thursday, August 21, 2008 11:23AM Report Comment
 

13. mark wadsworth said...

Matt, fair point, but house prices are a function of incomes, which are rising at 4% or so nominal so let's not get too technical.

The fact that commodities and imports are racing away (10% per annum?) does not help mask the HPC, in fact it probably makes it even worse.

Thursday, August 21, 2008 11:29AM Report Comment
 

14. vindicated said...

I have voted at 60%. No good reason other than wishful thinking!

Thursday, August 21, 2008 12:20PM Report Comment
 

15. plato said...

60% from peak, easily for simplicity. Would be tempted to go 80% but for the obscure use of official stats. In reality accounting for what your currency would buy then as opposed to what it will, loss of potential profit during 'normal' growth,etc. Well over 100%.

Thursday, August 21, 2008 12:56PM Report Comment
 

16. nubbers said...

Just a suggestion - next time state whether the drop includes inflation or not. This would change my answer by perhaps as much as 15-20% as the trough will be several years after the peek.

Thursday, August 21, 2008 04:42PM Report Comment
 

17. mark wadsworth said...

Nubbers, point taken, will do, let's do nominal fall for simplicity.

Thursday, August 21, 2008 05:57PM Report Comment
 

18. still renting said...

Anyway, you're all wrong. That nice man from RICS said the drop would be 16% peak to trough and I'm sure he knows what he's talking about.

I'll go for a 50% real fall over 4 years, which will equate to 30% - 35% nominal.

Thursday, August 21, 2008 06:18PM Report Comment
 

19. mark wadsworth said...

SR, that's assuming 4% inflation or something - there is a school of thought that says we are heading for DEflation.

So 50% real might be 60% nominal!!!

Thursday, August 21, 2008 08:06PM Report Comment
 

Add comment

Username   Admin Password (optional)
Email Address
Comments
  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Main Blog | Archive | Add Article | Blog Policies