Results just in! - House price decline accelerates

[Solidec]

While interest rates remain low, the housing crisis wont really manifest for most existing homeowvers who are technically in negative equity.

SVR's are still ridiculously affordable, around 5%.

If/when inflation kicks in and Merve the Swerve finally starts raising rates to counter this effect, THAT is when we will see even larger scale reposessions, esp in the Buy to let sector.

Negative equity combined with 10% SVR's is when you get mass repossessions/forced sales.

This all hints at a very slow and very drawn out housing correction. If current estimates hold true and base rates remain historically low for another 12-18 months, the falls will remain at this rate and even stabillize.

I am looking to hold off buying my first place until the REAL crash begins. Hopefully be able to buy super low with a very very large deposit.

[AtW]

Looks like renting wasn't dead money after all.

[BrilloPad]

While interest rates remain low, the housing crisis wont really manifest for most existing homeowvers who are technically in negative equity.

SVR's are still ridiculously affordable, around 5%.

If/when inflation kicks in and Merve the Swerve finally starts raising rates to counter this effect, THAT is when we will see even larger scale reposessions, esp in the Buy to let sector.

Negative equity combined with 10% SVR's is when you get mass repossessions/forced sales.

This all hints at a very slow and very drawn out housing correction. If current estimates hold true and base rates remain historically low for another 12-18 months, the falls will remain at this rate and even stabillize.

I am looking to hold off buying my first place until the REAL crash begins. Hopefully be able to buy super low with a very very large deposit.

SVR = standard variable rate?

[DimPrawn]

I thought you were rich now? Show me the money Atw!

[BrilloPad]

Looks like renting wasn't dead money after all.

If you rented since 1997 then it was a bad move.

When you are down in the city next Wednesday for your anarchist protest I hope we can have lunch. Provided you have a bath first.

[Solidec]

SVR = standard variable rate?

yup

The rate most people in negative equity will get stuck on when no bank will remortgage them due to having zero equity.

Most SVR's are still historically low so its not crisis point yet. (this was one of the PRIME reasons base rate has been cut so low, to prevent mass reposessions)

[AtW]

If you rented since 1997 then it was a bad move.

It's a bit of a stupid move to buy a house whilst being on temporary visa - I would not have afforded to buy a house until 2001/2, time of downturn in IT here, not exactly good time for buying since I was still on temporary visa, after that it was too late as prices have run way too high for my liking.

[Jog On]

While interest rates remain low, the housing crisis wont really manifest for most existing homeowvers who are technically in negative equity.

SVR's are still ridiculously affordable, around 5%.

If/when inflation kicks in and Merve the Swerve finally starts raising rates to counter this effect, THAT is when we will see even larger scale reposessions, esp in the Buy to let sector.

Negative equity combined with 10% SVR's is when you get mass repossessions/forced sales.

This all hints at a very slow and very drawn out housing correction. If current estimates hold true and base rates remain historically low for another 12-18 months, the falls will remain at this rate and even stabillize.

I am looking to hold off buying my first place until the REAL crash begins. Hopefully be able to buy super low with a very very large deposit.

When do you think that will be?

[DimPrawn]

The real crash is about 2 years away.

[sasguru]

house prices have been faling in the US for 3 years now

hth