Tuesday, January 1, 2008

Is that all?? Oh of course, that is just the averager percentage…

Homeowners will lose £20,000 by next Christmas as house prices drop 10%

Homeowners will lose £20,000 by next Christmas as house prices drop 10% Glimpse of the future: A slump in the housing market is indicated after ten years during which prices have doubled An average of £20,000 will be wiped off the value of every home by next Christmas, it is claimed today. This will be the effect of a 10 per cent fall in property prices compared with their peak in August, say analysts.

Posted by bufferbear @ 01:00 AM (1520 views)
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20 thoughts on “Is that all?? Oh of course, that is just the averager percentage…

  • Noheadforfigures says:

    10%, £20,000 – SO, the average proce of a house in London is £200,000?????????????????????????

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  • planning4acrash says:

    “Confederation of British Industry director-general Richard Lambert warned that “a sharp reversal” in house prices would have serious consequences but added that there was a risk excessively gloomy talk could fuel a deeper downturn than need take place”

    Well, if talking will have that much affect, we ought to start SHOUTING!!! Pass me a megaphone!!!!!

    and HAPPY NEW YEAR!!

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  • I think a recession is now inevitable. It’s beyond me how anyone can celebrate the new year, with such hard times on the way….but there ya go!

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  • hpwatcher said: “I think a recession is now inevitable. It’s beyond me how anyone can celebrate the new year, with such hard times on the way….but there ya go!”

    Och, you poor soul, to feel so down on New Year’s Day!

    There’s a time to weep and a time to laugh
    a time to mourn and a time to dance

    If there’s a recession on the way, lets be happy while we can!

    HAPPY NEW YEAR, EVERYONE!

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  • ”If there’s a recession on the way, lets be happy while we can!”

    I guess that’s what those woth massive debts are saying also…..’lets be happy – and borrow more – while we can’

    The thought of a recession makes me very happy though!

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  • ‘that there was a risk excessively gloomy talk could fuel a deeper downturn than need take place’

    so thats the reason we’re going into recession,gloomy talk…..pulleeeeeeeeease.so overindebtedness has nothing to do with itwhere do they find these people

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  • hpwatcher. I’m glad you’re happy 🙂

    the reaper. I thought was he was saying was that gloomy talk would worsen the situation, not cause it. I always thought that the constant refrain of “prices can only go up” worsened the house price bubble, so doesn’t it make sense that widespread pessimism could influence the extent of the downturn?

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  • ”the reaper. I thought was he was saying was that gloomy talk would worsen the situation, not cause it. I always thought that the constant refrain of “prices can only go up” worsened the house price bubble, so doesn’t it make sense that widespread pessimism could influence the extent of the downturn?”

    I think that’s what they call market sentiment!

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  • “Homeowners will lose £20,000 by next Christmas as house prices drop 10%”. What an appalling headline, they talk as though someone has demanded 20k from ALL homeowners at knife-point. Ridiculous.

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  • it will be more than 20k in london. LMAO

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  • On The Brink says:

    This is scaremongering at its worst. Noone is ‘losing’ 20k as they never had it in the first place unless they cashed in at the top of the market (like we did!!).

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  • on the brink says:

    This is scaremongering at its worst. No-one has lost 20k unless they had cashed in at the top of the market.

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  • new user 2007 says:

    On the brink…

    I would like to ask a question.

    Forced sales will happen as many BTL bought at the top of the market, unemployment is about to rise, and effective interest rates will rise for the many who lied about their incomes as now lenders will ask agents to check.

    My question is…

    If salaries have not changed much in the last 12 months and will not change much in the next 12 months and the profile of buyers is much the same

    BUT lenders are no longer willing to offer the income multiples they would have done 6 months ago i.e. from 6-7 (most people I know have gotten this much to buy in London) down to 4-5, then does this not mean that assuming average salary of around 24k then all buyers can offer is 48k less than 6 months ago?

    Please explain to me then how people will still be able to pay the equivalent of 7 times income when they cannot get that much?

    The alternative is then a large fall in actual prices, or no sales?

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  • “No-one has lost 20k unless they had cashed in at the top of the market”

    On the brink, the problem is that even if people haven’t cashed in, they still think of that money as being in the bank. How many times have we heard people say, “My house IS worth…” rather than “..would be worth if I sold it and cashed in.”?

    Now that prices are falling people will feel as though they had personally lost the cash from their pockets and that will drive political and economic sentiment.

    The Standard is just reflecting the blinkered view of most of its readers

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  • on the brink says:

    I’m not saying that some people won’t lose but not everyone…it all depends on whether they are in the market speculatively or not, whether and by how much they are overgeared, and whether they keep their job/income/tenants (whatever) in the next few years. We are waiting to buy in again…but when?

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  • dohousescrashinthewoods says:

    Several people, including myself, have great hope for 2008. No illusions that it will be easy, but the dispelling of a mirage economy and the bursting of various credit-related bubbles, ushering in some reality, are goo things. Even if there is pain and hardship on the way, lots of good will come out of it, not least ordinary people being able to buy homes soon. The UK starting to do “real” work again, once the fantasy stuff stops being viable, is a bright spot on the horizon.

    When you’ve had too much to drink, it is far better to stop, and to sober up – despite the hangover – because if you keep drinking, you will end up bankrupt or dead, whichever comes sooner.

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  • I’m hoping house prices will drop a decent amount in the next year or two, but at the same time I’m not sure I want too much of a recession. Lower house prices won’t do me much good if my job disappears. My income has already decreased because everyone is having to tighten their purse-strings.

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  • planning4acrash says:

    Dohouse, you are totally correct. With the drying up of stupid money markets, companies have been able to issue bonds and the UK’s pension deficit has dissapeared, in just a year. It just goes to show how distructive bubbles can be. In nature, you get creation from distruction. Fires in a forest can germinate seeds, are necessary!! If you can plan ahead, percieve beyond trends to understand cycles and complex patterns of cause and effect, read beyond the vested interests, make yourself adaptable to foreseen and unforeseen change, then you can profit in almost any environment most of the time.

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  • planning4acrash says:

    Yes, 2008 will be a good year I hope, this year retaining wealth in a period of transition (changing asset and money prices), along with retaining sources of income, will be the challenge. For those who haven’t already bailed out (like me with my stupid student loan) you may well find that paying of debt is the challenge. Good luck to you all.

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  • It’s not going to be easy (at all) but I am looking forward to a time when people in this country lose the obsession with all this mindless consumption. It’s about time people realised that they have a choice between mindless consumption coupled with debt slavery for themselves and their children and grandchildren OR getting off their backsides and demanding more from our leaders. The sooner they get something other than shopping to focus on the better for all of us.

    Su, I agree that I don’t want too much of a recession either. Sadly, I think Liebour et al have condemned everyone one of us (apart, of course, from the top 1%) to the mother of all recessions.

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