The Day Of The Great House Price Crash - Finally

[US Citizen]

As I write this post, the winds outside are furiously smashing into my house at 60mph and they say on the local news tommorow will see the worst weather we have seen in the past 10 years, here in the North West.

Unlike the stormy gails of Monday, more people will be affected right the way from Ulster, North West, North Midlands & Wales. This area covers appoximatly 20 million homes, much more affected people than Monday.

The devestation these sever gails are going to have is going to massive. We are talking about one of the less affluent parts of the entire country that will be hit with huge repair bills. Even if your are loaded up with £900 of super duper Lloyds TSB insurance like me, that covers me for taking a leak on the bathroom carpet, we know that getting the repairs done will take time and it wont be cheap.

If you are not carry enough insurance and just got basic cover there is the possibility that your home will be in disrepair for quite some time.

So lets get to why you chose to read this article - I'll come to the point. The housing market in the whole of the North West has been in decline -10% since August. Homes just are not selling, Estate Agents are folding because things are so desperate for them. These severe gails will be the death nell in the market that finishes the house price boom since 2001.

The budget also comes out tommorow and people around here are no longer feeling the pinch. There monthly income is substantially less than the expenditure and cannot borrow any more money from the bank.

Its musical chairs up here and the music has stopped and there is simply not enough chairs to go around. The market is now in terminal decline and the weather and the budget will be the tipping point.

Imagine this for a second, 9 million people (The population of Manchester, Lancashire, Merseyside & Cheshire), not buying and selling their homes because they cannot raise finance and have no money. Soon this will spread to rest of the North, which isnt fairing much better. The Midlands and Wales will be next in maybe a month or so and then by August/September London will be deep in the crash.

Negative equity and huge inflation (denied by official sources) will force the country into a deep dark recession.

The period we all know as the boom, finished in August/September last year seeing the credit markets seize up and then the run on the Northern Rock, interest rate rises and fuel bills going through the roof.

We have had a period of stagflation (stagnant growth and inflation in real terms in fuel & groceries), we are now (tommorow) going to see other factors bring this pack of cards tumbling.

I have heard people say "so wheres this crash then", they have never been in a house price crash if they have to ask that ridiculous question. The market is crashing daily and tommorows events will compound its effects to make it appear a little more real to a lot more people.

Its not the end of the world . . . yet. Get suffucient insurance before its too late, buy it online. Take care on the roads and watch Mr Darling blag a budget tommorow. I wonder how many times "Climate change" will be mentioned in the budget. I reckon 8 times at least.

Edited March 11, 2008 by debt-free