Is the UK Housing Market actually crashing ?

Question

http://uk.reuters.com/article/personalFinanceNews/idUKNOA82698820080408

Answer 1

No house prices are vastly over inflated and people are not paying the asking prices .

House prices will continue to drop and eventually they will even out .

Answer 2

Must be, it says so in the papers!

Answer 3

All the signs are there but Gordon Brown will do everything to persuade BOE to lower rates as his big promise when labour came into power was ' no more boom and bust'.

Supposedly BOE is independent but believe that and believe anything. Inflation is supposedly only about 2% but look back last year at all your utility bills and how much petrol was and you wonder what they measure inflation with.

Answer 4

Hope so. I can't afford to buy one.

Answer 5

The issue is relative.

If one considers, the estimated fall in prices, this financial year, then a mini crash is in progress. However, if compared with prices about 1 year ago, prices are still showing an overall increase.

Recent mortgages will be showing an equity shortfall. Longer mortgages will not.

Answer 6

Yes, marvellous isn't it?

This is the second time it has happened to me. It happened in 1984.

I can't understand why you lot are so obsessed with this subject to be honest.  It's all due to the cyclic nature of capitalism.

But if you think it's a good idea to wait until prices are "more sensible", think again.  A lot of people thought that in 1986. Either you need a house or you don't. " A house is a machine for living in ", not a way of making money.

Actually I blame that Kirstie Allsop girl.  She led a lot of people to have unreasonable expectations.

Answer 7

Yes, but it's happening in slow motion!

Answer 8

No it isn't.  

Things should level out eventually, unless we enter a deep recession.  Things are just going back to how they were before the 100% mortgage (and rightly so).

Answer 9

Yes. And about time.

Good I say.

Answer 10

No. The reason is that the housing stock has not increased. But the supply of cheap mortgages is drying up and this means that fewer buyers chasing after the few houses/flats that come on the market. Some sellers are getting cold feet and selling at a discount, but that will soon dry up as well.Unless, lots of people decided to jump ship and emigrate, prices should come down a bit but hold in the long run.