Friday, December 3, 2010

A HPC could soon be a self-fulfilling prophecy.

House prices may fall another 10pc

IHS Global Insight and Capital economics think there will be house price falls of between 6 and 10% by the end of 2011. This is good news and means the FTB's amongst us should put off buying any purchase until average prices are around 150k, or at least negotiate a discount to take these falls into account.

Posted by miken @ 08:48 PM (1967 views)
Please complete the required fields.



8 thoughts on “A HPC could soon be a self-fulfilling prophecy.

  • Oops, silly me, getting my English mixed up (must be the beer!). Of course I meant to say ‘put off buying any house’.

    Reply
    Please complete the required fields.



  • sibley's b'stard child says:

    I can see what the DT are up to; they’re trying to entice the HPC readership into their ranks, with bear food, to coincide with the proposed paywall. Well it won’t work I tell thee; i’ve got Moneyweek.

    Still, i’ll happily see more of the same.

    Reply
    Please complete the required fields.



  • That’s good news the housing price is crashing down by 10%. I am planning to by the property the marketing price is £220000. I have offered £200000, is that is a reasonable price in Kent area.

    Please advise me.

    Reply
    Please complete the required fields.



  • Well yes they may fall, providing that the government does not set in motion more money printing.

    Never underestimate their determination to keep house prices high to favour their mates in banking etc.

    Reply
    Please complete the required fields.



  • Peter
    As mw has pointed out, it won’t finish banks off if prices fall 30%, never mind 10% or so. Low interest rates for home owners has just been a happy coincidence (for some) of ‘re- capitalising the banks, which has largely been done now.
    Flashman has a pretty good idea of what’s likely to be happening & word on ‘his’ street seems to be interest rates going up sooner rather than later next year.

    I general opinion that if it’s more profitable for banks if interest rates were higher then that’s where they’ll go.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    STR, ta for nod.

    But as Peter says, this Home-Owner-Ism is for the benefit of the banks as much as anything, so the fact that banks could easily survive even a 50% fall in house prices won’t stop the pol’s from pretending that a 10% fall would finish them off, and bailing them out accordingly.

    Reply
    Please complete the required fields.



  • general congreve says:

    Call me cynical, but this piece of journalism is basically saying, wait for a modest HPC, then pile in. Seems like a banker-backed piece of spin to me, “Oh yeah, we agree house prices are falling, but once they’ve dropped 10% it’ll be a great time to jump back in!”.

    What rubbish, a total buyer strike until we’ve seen 50% off, that’ll be the ticket!

    Reply
    Please complete the required fields.



  • @6 said ‘…..a total buyer strike until we’ve seen 50% off, that’ll be the ticket!’

    Problem is most buyers are also sellers. and although a price reduction is generally relative, there’s no way they’ll be prepared or able to absorb price reductions of this magnitude. Nequity would render them unviable to lend to. They need a mechanism to transfer the debt from one property to another. I’d bet they’d rather stay put, and demand a high sell price. Even if the property or market will not realise these high prices, which is what we are seeing. Result – Stagnant market. There needs to be another catalyst. High interest rates perhaps, forced sales due to unemployment perhaps.
    This will all depend on how much more QE is injected into the money-pit of bankers irresponsible, negligent, financial wizardry (and bonus’s).
    I mean, why on earth would they try to actually earn a profit, when the gov’ts have been literally raming tax-payers money down their open gluttonous greedy throats?

    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>