Housing market

  carver 19:57 08 Sep 2008
Locked

This morning I was watching the news about the American housing market and how the American Gov had bailed out the 2 biggest mortgage lenders click here

click here

and I thought for the first time in ages that this was some good news.

Then on the BBC 6.0 PM news this idiot who is the
chief executive of the Nationwide Building Society spoke out with news that in his opinion house prices would fall by a further 25% click here

I might have got it all wrong but I think that this will not help the British housing market one little bit. Don't we have enough doom and gloom without him speaking out or is he just trying to send some more mortgage lenders to the wall.

  oresome 20:01 08 Sep 2008

Doom and gloom???

Surely falling prices are good news for would be first time purchasers and makes little difference to anyone already on the ladder.

The housing bubble needs deflating.

  carver 20:11 08 Sep 2008

It's been worked out that if prices fall by 25% then it will put over 2.5 million home owners into negative equity, if this happens the recession we are having will just get worse.

Think about who will buy a house if they think the price will fall before they even move into it.

  carver 21:06 08 Sep 2008

It doesn't matter whether he said house prices COULD fall by 25% FROM THEIR PEAK , it's the fact he said it.

If you where a 25 year old would you buy a house at £150000.00 knowing that in 2 years time it was only going to be worth at best £129000.00 and to sell it you have to take a loss.

If a lot of first time buyers put off buying for only 12 months this recession will put a hell of a lot of people out of work.

We where thinking of moving but after this last bit of news we now might have trouble selling at a price that will enable us to move.

  newman35 21:37 08 Sep 2008

No one in their right mind would be going out to buy a house just now if these people keep making their predictions.
Anyone, able to, will be waiting another couple of years - those not able will have to be selling way below cost, or handing in to repossession firms.
Will prices of bricks, timber, cement, labour etc fall, too?? No way, so nobody will be building for a couple of years, and I forecast an 'explosion' of prices when the market turns and the 'backlog of buyers' are all suddenly needing homes.
The merry-go-round then starts again!

  newman35 08:16 09 Sep 2008

"Now, people who took out Nationwide mortgages in 2009 all rush to sue for misselling because they weren't told prices could continue to fall."

What would be the grounds for 'misselling'?
The Society is simply lending you money to make a purchase that you have decided is a fair price. They cannot be held responsible for your valuation or any subsequent loss in value of any goods bought. They are simply lending you the cash, surely?

  jack 08:47 09 Sep 2008

Invented - it scares people witless when it it should not.
Consider-
1. Everything purchased is worth less than the money paid - Cars and other capital goods and all else.
Only property because of demand [and perhaps the odd rare motor car - Morgan-say or artworks appreciate in value].

2.We all have to live somewhere, and unless you are very rich or[like me very old ]do we live 'Rent Free'
Yes Rent - whether it is a local council, a housing association, a private landlord or a money lender , money paid out for the right to a property is rent.
Even if the family income disappears- there are ways to hang on in- We all have to live somewhere
and pay for the privilege.

  red1977 08:51 09 Sep 2008

Yuo are spot on there mate. We all have to live somewhere and as long as you can afford the payments who cares. Also if you move house after 2 years the likelihood is all other house prices will have gone down also so, if trading upwards, you will be better off. So not bad news after all really :)

  oresome 09:05 09 Sep 2008

A house is foremost a place to live, not an investment vehicle. Treat the mortgage as rent.

Once you've purchased at a price you're happy with, does it matter if it falls in value? If it keeps it's value relative to other properties and you want to move in the future, I say it doesn't.

With regard to the material cost of new houses, it's true that they will continue to rise. But the land value forms a substantial part of the final cost and land values are subject to market pricing. House builders have been devaluing their land banks over the last few months to reflect market rates.

  carver 09:46 09 Sep 2008

You are now talking gibberish, people sueing because they weren't told house prices would fall.

I

  babybell 09:48 09 Sep 2008

I AM only 25 and I am desperate to get on the housing market so for me this news is music to my ears. Yes people who have recently bought a house may now be suffering negative equity but as long as they hold out for a couple of years, the market analyist are also predicting that house prices will soar once again so there wont be a problem. It's all relative as well, if your looking to sell then you might not get a lot for your house but buying a different house will also be cheaper.

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