House price crash now in full swing, did you see it coming?

Question

I'd like to see people try and deny it now!

Answer 1

Yes. I was very concerned when I saw 20+% returns in a year. That's unheard of and unsustainable. If you looked at the mortgage industry or had a mortgage then you knew what was going on too. Banks and mortgage companies were anxious to close loans. Lenders knew how to manipulate the system and had strong incentives to do so if they wanted to make money and keep their jobs. Greed was all over this.

It's time the big whigs ultimately responsible make restitution and then go to jail.

Anyone with any kind of intelligence knew a problem was coming, a big one. It affects everyone even those that did the right things or tried to.

Answer 2

The only people worried  are the idiots who own 5 houses with mortgages on them all.

Answer 3

we should have sussed it, Gordon Brown is doing it deliberatly so when he gets kicked out of Downing street it wont cost him so much to buy his own house

Answer 4

I bought in March last year - before the market started slowing, but to be honest my house is a long term investment and I have a 50% mortgage, so I'm not panicking just yet...

Answer 5

Yep, this is the third housing slump I have lived through but its going to have to go some to beat the one of the late 1980s/early 1990s.

Answer 6

In a way yes, but not as quickly as it finally came.

A few years a go there was a frenzy over the house market, various lending schemes which if u looked at them carefully were irresponsible and yet people took them up. Encouraging people to buy houses as pension investments increasing the buy to let market. Before any crash there is a period of frenetic activity that doesnt make sense and low and behold the crash has happened.

This I think will be a deep long period of adjustment for an overblown market.

The people that will have difficulty r people that overreached themselves in the borrowing stakes and people that have bought in the last few years if they lose their jobs, because they bought at the highest peak of the market and will struggle to repay the loans.

I just think people who dont have to move will be in their properties for some years while the market adjusts.

For any first time buyers this could mean that some houses prices come within reach at sensible prices but they will have to save bigger deposits and hunt around for a mortgage.

It looks now that the builders r not going to build many houses for a while because they wont be able to sell them at the prices they want. They will just sit on their land banks.

Answer 7

Yes. It was obviouse to all if they had only looked. There was no way house prices could stay so stupidly high when a huge % of the population was priced out of the market. You can't have chains if the first time buyers can't afford the first property.

Answer 8

I saw it coming ever since I did Economics in high school .......... anyone with a brain knew that the level at which house prices were increasing wasnt sustainable.

Unfortunately their a lot of idiots in this society who believed that property could just endlessly keep going up at 20% a year.

Honestly it makes me weep at the stupidity of so many in this country.

Answer 9

Yes.But I still don't understand how so many got caught up in it.

Answer 10

I saw it coming years ago. There needs to be a regular feed through of first time buyers. If someone wants to sell a house there has to be a buyer who can afford that house, and some who can afford to buy their house and someone who can afford to buy theirs etc etc. If first time buyers are priced out, then everyone else will gradually see a drop in activity.

It is like a spring which becomes a stream, then a river. If the spring is blocked, the stream, then the river will gradually stop flowing.

The public sector could be one solution, because they are non profit, and may end up being the only organisations building housing, if they can get the business capital in the first place.

Answer 11

who cares? cant do anything about it!

Answer 12

Only the people who paid too much for their house need worry.  Or those on interest only mortgages and then have borrowed to the max on the increase equity value.  If you bought a house 5 years ago the drop in prices hasn't even come close to the increase in value over that 5 years so you will still be quids in. In fact it hasn't even dropped enough to outweigh the value increase in the last to years.  So if you are going off what the high was and now it's worth a few grand less, you are talking about non-existent dividends.  Alot of people are now overstretched and are getting their houses on the market because of a possible serious economic downturn, but lenders are not lending unless you have spotless credit and a large downpayment.