Nov 08
18
Quick Poll: 2009 - Are We All Doooomed?
The housing market has had a torrid time of it this year, but how will it fare in 2009?
Will prices keep falling? And how long for? Will rate cuts boost transaction levels?
Click the link below to let us know your housing market predictions for 2009:
What Will Happen To The Housing Market In 2009?
Related Tags: Interest Rates, housing market, GeneralRelated Posts:
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It is extremely clear that house prices can’t recover within 2 years and looking at previous crashes you are looking at around 10 years peak to trough to back to peak prices.
What constitutes a recovery, prices rising again or being equal to before the drop? In my view, for the truest sense one would have to choose prices being equal. In which case history says 10 years. Personally, fwiw, I think 10 years is optimistic to the extreme.
It’s not going to collapse completely, but it’s going down substantially. Reasons:
Lack of cash to lend (forget low interest rates)
Lack of cash for bigger deposits
Change in sentiment - value of a house is based upon opinion of it’s worth, and sentiment has changed. The average man in the street knows it, and no-one wants to lose out in a falling market.
Sellers will only slowly follow the market down, costing themselves tens of thousands of pounds as they resist lowering prices to meet buyer’s expectations.
I expect that people will put Christmas spending on their credit cards, and hope that ’something will turn up’ in 2009. What will turn up is more job losses, followed by a massive hike in house repossessions, and a concomitant decrease in property prices. By the summer of 2009 we will have a lot of people in great distress. It will be horrible. However, houses will become affordable again (3.5 times salary) by the end of 2009.
House prices will drop by another 15% during 09
The crash started to get going in 2008. In 2009 we will start to see the impact of job losses, repossessions and a panicked flight out of BTL by many investors who entered the market in the last 36 months. The impact of this will be to strip another 20% off the average house price, in addition to the 18 odd percent that has happened so far this year.
gonna drop, drop, drop, the wages or lack of them will never cover the negative equity that people will be facing.
sell now at a reduced price, it’s the only way to survive a very long recession. The last crash reulted i people owing 20-40,000.
this time people will be owing 100,000 plus!
I suggest 50%+ falls from peak. Property was very overvalued and only supported by a period of stupid lending which banks are regreting.
If banks are reverting back to traditional lending then it forces traditional prices. All those who spouted rubbish about 10% rises year on year and prices only go up are going to have one hell of a hangover.
Remember it is a property cycle not a continous upward curve.
We are going to have years of falls, followed by stagnation with the most vulnerable parts buy to let and self certs (The British sub prime).
I would love some advice or comments me end my partner have a really good deposit weve been saving for a while in rented , we have seen a house we love it sold 2 years ago for 188 its up for 169 they’ve accepted 165 were now worried of making a poor investment as we’ll be in negative equity next year should we pull out and wait longer and save some more money or should we go for it. thanks
As mortgage rates fall, the margins on btl become extremely attractive-the best place to invest. As this becomes apparent, demand and prices, especially at the lower end of rental flats will strengthen and rise. With top end residential purchases deferred,the demand to rent will increase making investment in btl a secure bet and further driving up demand and prices.