eurotramp

I wonder what people think about the house price situation.
Do you think the prices go higher, lower or stay the same for a while?

TruBrit

hmmm need a crystal ball for this one..lol... overall feb 06 showed a modest increase as house prices rose for the first time in 18mths....and hopefully with spring on the way the market will continue upwards...does depend a lot on the areas...i'm going by our market prices in surrey.

Always21

I think they are going to stay the same for a while, at least as long as interest rates are kept artificially low. They simply can't keep increasing as nobody can afford them as it is! The people at housepricecrash.co.uk are pretty adamant that there's going to be a crash and I read it frequently to keep my hopes up! However, I have seen it suggested that they delete posts by people who disagree.

TruBrit

yep i've heard that from lots of sources.....we have property in the uk so naturally i'm not wanting a crash however it's happened before and things go around in circles.....as they say...watch this space

eurotramp

MMhh, yes housepricecrash.co.uk.
Funny people over there, you get skinned alive if you not believe that there will be a crash, so I did hear

I'm not sure anymore, 2005 was to be the year of the crash, but nothing rally happened.

Since we gone move to greater London, the house prices are a big issue for me.
I think that there will be a very slow increase over the next 4-5 years...but I hope for a crash

ukkiwi

A lot of people will loose lots of money if prices crash - me included. Save up and get on the ladder or you never will.

TruBrit

nahh there wont be a 'big' crash not in the london areas....interesting though how the media plays a big part in recessions, talk about it, almost will it to happen and it will

CalgaryBlade

Just like the 'big' crash that never happened in 1988 then. There were plenty of people left with negative equity then.

Interest rates in the UK are artificially low and if they start to rise it will hit those people who have borrowed to the hilt.

Happy we sold up in summer 2004, just about at the peak.

R2D2

We sold up in July 04, went into rented for 10 months before our move to Canada...........and now when we browse the estate agents website back in our home town, a house very similar to ours on an adjacent street, is on the market for the same figure as we sold ours for. Over 18 months down the line !
If they keep rising, our options of maybe going back oneday, might be pushed further away from us. (not yet though ..........too much to see and do here!)

CalgaryBlade

If a very similar house is on the market at the same price as that which you sold yours for 18 months earlier, then it suggests to me that the housing market has peaked. That'll be asking price, who knows what it'll acheive in reality? Look at the threads of people trying to sell theirs to emigrate and the sort of hits they are taking on asking prices.

As for going back ...

The value of the CAD has risen about 20% since 2004, and I imgaine that as you're in Alberta your new house will probably have risen similarly. The house we bought in July 2004 here would cost us about 25% more to buy now.

eurotramp

Maybe so, but house prices are 30% overpriced..why should I worry about other people who made a fortune with their house over the last 7 years?
Sorry, I like to play fair, but that would go a bit to far .
You need a bit more then just saving up to buy a little semi detached for 300k.
Thats just ridicules..........

ShozInOz

I think they are going nowhere for quite some time until wages catch up. There is a first-time buyer drought which means the market is not being fed. But the economic situation does not suggest a crash either. Be careful with surveys and figures - especially those from banks, estate agent organisations, etc. Land registry is probably most reliable but most out of date. Buyers and sellers seemed to have locked horns for wuite a while. However, some areas I think will fall, particularly the likes of Liverpool, Sunderland, etc and surrounding towns. the key is whether London crashes, and I don't think it will.

SANDRAPAUL

Until the Government actually does something about the lend levels there will be a stalemate. I did not realise just how far Banks and Building societies had gone with their relaxation of criteria. The UK government says it wants to curb the debt rise but actually sits on its hands. The problem will be the powers to follow and the poor sods with 10 x income mortgages. The world economy is stronger and that means higher rates. Whilst the UK economy is between a rock and a hard place with reduced manouvarability and a piss poor economic record (GDP has been driven by debt not profit). If Rates rise in Europe, America and new economies like China and India that will have pressure on the UK to follow.

We are still only 18 months since the slowdown period began.

The crash on day one is never a reality. The media is and was full of shit. They sell their souls for a penny worth of drama.

Time....

eliscolin

The BBc has an article about this subject today

http://news.bbc.co.uk/1/hi/business/4689954.stm

R2D2

Yes, we bought the house here in Aug 05 and we know that it will have risen in value. What we believe we could get for it now, would mean we could probably take a similar amount of cash back to the UK as we brought over in the first place, so hypothetically, we wouldn't have lost money. It is all hypothetical though, as we are not going anywhere just yet.