Tuesday, Nov 25, 2008
London prices are falling down, falling down, falling down
Evening Standard: House prices due to fall by 25% next year
"HOUSE PRICES are set to collapse by 25 per cent next year as new mortgage lending dries up completely, the Treasury has warned in the small print of the pre-Budget report."..................that means 50%
Posted by titaniccaptain @ 06:46 PM (992 views) Add Comment
12 Comments
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1. Vstor said...
Everyone is getting on the band waggon...
2. Dave said...
Hi.
It's just a shame nobody can get any money from the banks to pay for them!!!!!!!!!!!!!!!!!!!!!! That makes a crash irrelevant doesn't it?
If it does happen when are you closing this site down? It will then have served it's purpose won't it?
Dave
3. paul said...
So we were right all along. Again.
4. fjcruiser said...
Another "expert" comment. House prices will come down as much as they need to come down in order for people to be able to afford them again. Some may have to drop 200%, some 90%, some 50%....It all depends on the jobs available at the time. i remember a coleague of mine telling me 7 years ago that in the Hull region where she came from, houses were still being exchanged during pub conversations at about £200 a go. There was nothing wrong with these houses, some in fact were quite nice. Since most people were unemployed, there was no demand for them even in 2001except at bargain prices of £200.Scary.
5. plato said...
I note in one of the comments below this astute point was made :-
'Why dont the government reverse the prohibition for pension funds and individuals to hold residential property in a sipp (as was originally going to be the case )in order to kickstart the Housing market.?'
Was it that they realised the over-valuation of property would decimate these pension funds' future growth?
Or was it to cool down the crazy impetus of the property market by not allowing a perceived guaranteed profit?
Either way it actually saved a lot of people who would have invested at the highest point. Luck or judgement?
6. planning4acrash said...
Price falls and falling volume of sales are all symptoms of deflation in the property market. Eventually, prices catch up with money supply and volume rises. If money supply is zero, house prices are only worth what people pay for deposit, PERIOD!
7. karlos said...
fjcruiser.... 200% falls...? Am I missing something?
(a 67% fall undoes a 200% rise - that's the maths teacher in me coming to the fore)
8. digdug said...
A 200% fall.. god have mercy on us all.. Imagine.. losing all your money and then losing all your money AGAIN!! We can only hope that the falls stop at 200% down.. any more and the universe may implode..
9. fjcruiser said...
Sorry typoerror guys, I meant 100% like houses selling at $1 in Detroit!
the good thing is everyone was still awake after reading my post!.
10. Old_traveller said...
Ahh! so there is no way a seller will pay me money for their home then?? In some cases it still may come to that.... ;-)
11. plato said...
digdug...........
With interest charged on interest this could actually happen - it's only a question of time.......... Our little financial universe could well implode.
Also there is the question of: In Real Terms?..... what that initial value would now be worth ........... again only a question of time.
12. Dbc Reed said...
Zero money supply or zero money supply growth?Both are crazy BTW