Housing market measure worst since 1990

[temi]

Surveyors are recording falling housing prices by the worst margin since the market crashed in 1990, the Royal Institute of Chartered Surveyors said on Tuesday. During the past three months, only four percent of surveyors reported prices rising, while 57 percent said they were falling, a net balance of minus 53 percent.
When adjusted for seasonal factors, the net balance was minus 64.1 percent, the worst figure for the housing market that the RICS survey has recorded since June 1990 when house prices began a half-decade slump. January's figure was -54.8 percent.



I hope this downward spiral continues, I have my eyes on a flat in London this year

[vicdigi]

Originally Posted by temi

I hope this downward spiral continues, I have my eyes on a flat in London this year

I hope so too. Everything indicates it should!

[Mega B]

The thing is with property it will always go up long term and yes you do get times when they fall back but the overall trend over the decades is from bottom left to top right on a graph i guess the art is to buy on the dips and sell on the highs.The only trouble is the normal person only owns the one house that they live in so the only way to release money from your property is to down size or move up North because the properties are still cheaper but even that is changing.

We bought our house in 1982 and it has risen 15 fold in price since we bought it but who is going to gain that the children are and yes they will get hit by taxes because they lowered the threshold for capital gains etc.

[temi]

Originally Posted by Mega B

We bought our house in 1982 and it has risen 15 fold in price since we bought

That is a considerable equity you have built up. Puts my properties near 3 folds increase into shame, but I only bought in 2002.

[rhyswynne]

Whilst I am happy that the property prices are going down (I have two connection with property owners - one was a comment on the BBC saying "Oooh, my house is worth a fortune!" about three years ago, the second is people on those ruddy property progams, god I hate them), I am quite sad for friends of mine who have worked hard to get on the property ladder and are now struggling.

Personally, I think it's an impossible dream for me. I'm not on too bad wages (enough to pay my student loan back), but I can't afford to even rent where I am, let alone buy. Unfortunately my area is home to a lot of holiday homes, artificially raising prices. Hence why I'm living with my parents. No, it's not ideal, but it's all I can go for at the moment.

What generally happens with a house price drop (this is coming from my mate who is an economist) is whilst the price drops (as Mega B said), you'd find wages generally rise a lot quicker after a mini-recession.

No comfort to those on mortgagues, but for savers, it shouldn't be too bad.