Housing crash in London...when do you think it will recover?

Question

My property in South London is decreasing in price because of the market, how long do you think the crash will last. 6mths / 1 year / 2 years??? When will it recover?

Answer 1

Housing is declining in value all over the world.  There was a great deal of international speculation in housing, and as with the tech bubble in the 1990's, it became overvalued and is now seeing a correction.

Predicting when prices will bottom out and how quickly they will recover is hard.  Investors are shy of the housing market, so buyers are having a hard time getting financing.  This keeps prices low.  Banks are still failing, merging and restructuring because of all the unsecured debt, and this will continue to depress the market for a while.

But despite all this, the economy is basically sound, the population is increasing, and people still need homes.  I would anticipate the market bottoming out within a year and slowly creeping back up.  It may take up to 5 years to reach previous levels.

Answer 2

It's not a crash!!!

It's a gentle revaluation of property prices which have gone mentally out of control.

A crash is when you start seeing your property value drop by 20% a month.

Some home owners seem to have a crazy idea that house prices can just keep going up and up and up without any sort of correction.

It's the same as the stock market, when things get too hyper there is soon a correction to make sure the markets reflect a much more natural price.

A house worth £200,000 in 2003 and then worth £250,000 in 2004 just isn't sustainable - it's not real and unless most of the populations salaries increase at the same proportion in the same timescale then you know there is going to be a fall.

Answer 3

The house crash is happening everywhere, not just London.  Everything is relative, what you want to buy is less, you sell for less.  I think everyone is going a little over the top, we are all in the same boat.  They reckon over the next 5 years house prices will increase up to 25%......... for everyone.

:)

Answer 4

So the United States is not the only place suffering from a housing crash?