House Prices

[Ian]

Being a young whipper snapper I've not experienced a house price crash before, or know much about it.

Is this website talking about an imminent crash a load of rubbish, or does it actually make sense?

I posted over a year ago about house prices, but they've gone up even more since! Don't think I'm going to be getting one for a good few years yet, however I'll be saving up for a deposit after this summer.

It looks like its £150,000+ for a small 2 bedroom place in Manchester (don't even want to imagine what London is like). I remember just 5 years ago there were houses in Northumberland where I used to live that were brand new 3 storey, 5 bedroom for £130,000.

 

[mudfrog]

Having been on the ladderfor the last 4 years I hope there is not a crash.
When we (me and missus) bought our first house we thought the prices for first time houses was high then. We paid about £67,000 for a 2 bed new(ish) property.
I feel so sorry for people trying to buy there first property these days

I hope there is not another crash like there was in the 80's cause it would be a disaster (not just 4 me).
Surely the government would not let this happen again. But you never know.

Cheers,

Rich

 

[Anon_F]

what goes up must go down

What goes up must come down!

10 years ago a 1 bedroom flat locally was 50k Now it's 155-170k, so if you go 2.5 times your salary you need to be earning 60k+ to buy. OK you can go for a mortgage say 3,4,5 or 6 times your salary but if interests rate soar as they did in the 80's & early 90's to 16% you could be in trouble.

I can not afford to buy a property at the current prices, if they fell to say 70k for a 1 bedroom flat i could just about afford it. The only people that have done well are those who bought when the narket was low and now are thinking of down sizing to a smaller & cheaper property.

 

[murdoch]

I really dont want to see a massive crash in the housing market, i remember friends being trapped with negative equity, one loosing 250k on his house. But prices need to fall to allow people to buy, as Feckit posted the prices round London are crazy, even as far as Bristol prices are near to Londons.

Mudfrog, please don't take this the wrong way but if prices did fall it would help the market, but i do understand those who like you do not want to see this. Prices have climbed since 1994 and i really can't see them going higher, if they do who will be able to buy? I can't afford to

 

[mudfrog]

To be honest if it did crash it wouldn't affect me too much (he says ) because I'm not looking to move, so therefore I don't need the equity in my house. But I dont want the interest rates to rocket

because when the mortgage is due for renewel it would be very difficult, if not impossible, to afford the current house I live in .

But yes Murdoch I do understand what your saying and agree that the prices do need to come down to help all the people struggling to get on the market.

Cheers,

Rich