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THOR33

Decrease Filters Through......

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We all are asking when the Crash will happen....Okay, when it does (not going to say if!)......when would you see the underlying decrease of the house prices to reflect the market actually in EA's around the UK....

Mr & mrs smith buy a house for £250,000 and the crash means there prop is valued to sell at say £200,000.......would Joe public, when it comes to sell ,actually sell for a loss??

I know i wouldnt! what do you think????

If the crash occured this year, I DON'T THINK we would see the effects until LONG time after!!!!!

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We all are asking when the Crash will happen....Okay, when it does (not going to say if!)......when would you see the underlying decrease of the house prices to reflect the market actually in EA's around the UK....

Mr & mrs smith buy a house for £250,000 and the crash means there prop is valued to sell at say £200,000.......would Joe public, when it comes to sell ,actually sell for a loss??

I know i wouldnt! what do you think????

If the crash occured this year, I DON'T THINK we would see the effects until LONG time after!!!!!

Depends if you had to sell or not, or were being repossessed, or splitting up etc etc. There will always be houses on the market...

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I am not sure how the figures are worked out but couldn't house prices fall without an individual making a loss?

Example

Three identical houses on a street:

House A - bought 2001 for £120K

House B - bought 2002 for £140K

House C - bought 2006 for £190K

House A wants to move and has equity in the property. They struggle to sell and eventually accept an offer of £160K

House B and C don't want to sell and they stay in their homes for the next 10 years.

Now this would show a drop in prices on the street of £30K without an individual ever making a loss.

Or have I got this wrong?

Comments anyone

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We all are asking when the Crash will happen....Okay, when it does (not going to say if!)......when would you see the underlying decrease of the house prices to reflect the market actually in EA's around the UK....

Mr & mrs smith buy a house for £250,000 and the crash means there prop is valued to sell at say £200,000.......would Joe public, when it comes to sell ,actually sell for a loss??

I know i wouldnt! what do you think????

If the crash occured this year, I DON'T THINK we would see the effects until LONG time after!!!!!

You are making the mistake of assuming that everyone bought at 2004 prices and that they will subsequently need to sell at higher prices just to break even. In actual fact the majority of people selling will not have bought very recently and so they will have bought their home for a lot less than 2004 prices. Indeed many sellers automatically factor in a £100,000 profit and then say how much should we ask for on top of that?

A better example would be Mr & Mrs Smith bought a house for £250,000, then they put the house on the market in 2006 (several years after they bought) for £750,000 and get really annoyed that there is no interest in the property. Grudgingly they are persuaded to drop £20,000 from the price, it still doesn't sell. Eventually they drop the price by another £30,000 and it does sell. Mr & Mrs Smith walk away feeling really p***ed off with buyers taking the mickey with really stupid offers and lament the fact that they have 'lost' £50,000. Despite the fact that in reality they have made a huge profit!

The fact is that most people bought years ago and prices have risen so much that very few face selling at a loss at the moment. In fact sellers are simply quibbling over how much profit they make from the sale.

For those who bought in 2004 or 2005 however it is quite a different story, they will not sell at a loss and so will not be able to sell at all - its called negative equity and it really only affects the last people to enter the market. Which is why HPCers must not give in to pressure from relatives!

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This is a goog point. I had various friends who bought in the last HPC as first time buyers. They went into negitive equity but kept their houses because they could keep up the repayments. Now they are sitting on properties worth three times what they paid for them! A HPC and negitive equity will ony affect a small amount of poeople!

Sorry....and a large amount of BTL's !!!

Edited by cupidstunt

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Guest The_Oldie

This is a goog point. I had various friends who bought in the last HPC as first time buyers. They went into negitive equity but kept their houses because they could keep up the repayments. Now they are sitting on properties worth three times what they paid for them! A HPC and negitive equity will ony affect a small amount of poeople!

Sorry....and a large amount of BTL's !!!

But if they had waited until prices had dropped before buying, they would have properties worth four or five times what they paid for them <_<.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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