Tuesday, May 6, 2008

house prices could take 10 years to recover

UK house prices set for 14 pct 1-yr fall-market data

"LONDON, May 6 (Reuters) - The average cost of a British house is expected to sink by 14 percent over the next year and prices could take a decade to return to 2007 highs, property derivative brokers said on Tuesday." Some people in the business are facing reality!

Posted by herrbbiiee @ 08:14 PM (1201 views)
Please complete the required fields.



12 thoughts on “house prices could take 10 years to recover

  • voiceofreason says:

    And that means probably 30% to 40% off from the peak at the low point due to overshoot.

    Anyone know how accurate these derivative indicators have been in the past ?

    Reply
    Please complete the required fields.



  • Looks like that 1 bed new-build shoebox flat by the Rivers Tees/Mersey/Trent/Don/Aire will be worth less than 60K within 12 months then.

    Reply
    Please complete the required fields.



  • voiceofreason, I’m not sure the derivative products existed during the last boom/bust – they are a recent invention.

    Reply
    Please complete the required fields.



  • anyone here have any idea when the low point might occur? i.e. when do you guys think the best time to buy might be?

    Reply
    Please complete the required fields.



  • last_days_of_disco says:

    @amjidk

    I reckon land in about a year and houses in two years. That is my plan at least, go looking for a nice plot with planning permission in a year’s time.

    Reply
    Please complete the required fields.



  • Hope the government doesn’t try to interfere too much with the “correction” that’s just started, mind you i wouldn’t put it past them, i don’t think they would want major house price declines around election time..

    Reply
    Please complete the required fields.



  • @amjidk: I think they will try to “take decisive action to combat the global effects of the credit crunch” which they imagine will give them a mandate to try and pump up the volume. Trouble is: the banks don’t really give a stuff what Darling Brown Nose thinks – as they’ve hinted in the spat with Mervyn King re bonuses. They are answerable to shareholders who want a return or someones butt. Secondly, who wants to buy a house when you think (and can now see in newspaper headlines) that prices are falling – regardless of how low interest rates or other “global solutions” Labour release onto us. We really need this correction – I am in industry and have not spoken to one person who does not have an orders issue. Faced with this, NOONE will take what will be a sure fire loss on their house unless they really have no choice. And with insolvency on the up and perhaps joblessness in the headlines by winter, that proportion could be on the rise.

    Reply
    Please complete the required fields.



  • japanese uncle says:

    70-80% drop in London
    60% drop everywhere

    Forgone development.

    Reply
    Please complete the required fields.



  • Good. The market needed a good kick in the teeth.

    Reply
    Please complete the required fields.



  • I predict 35%-40% by 2009/2010 and another 8 years to recover

    the gov/boe needs to focus on inflation not the housing market / credit bubble

    it’s time the tories called a vote of no confiendence on the muppets current trashing the country

    Reply
    Please complete the required fields.



  • JU hope you’re right but what are you basing your calculations on, over what time period and are you including inflation?

    PS did come back to you on the Hamptons article with poss. upside for your downsizing friends.

    Reply
    Please complete the required fields.



  • Property prices have been unrealistic for years, They have peaked, and the indications are it is a sharp peak. This is a good time to sell property if you need to.

    Reply
    Please complete the required fields.



Add a comment

  • 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

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>