As background, The Nationwide reported that the average UK house price in December 2008 was £153,048.
Over the period March to July 2004, it rose from £142,584 to £154,299. I can't wait for the first headline reporting that "House prices are now lower than they were five years ago", but can we guess correctly when that will happen?
Cast your vote here.
Oops, with the benefit of hindsight, I should have added the cop-out option "Never! House prices only go up!". Ah well.
Local Council Efficiency
3 hours ago
6 comments:
I think in some areas for some types of property it has already happened. Saw an advert from the train last week on a block of new flats in Chelmsford for a two bed at £67.5K, From memory this is about half what they were asking.
L, you have to be careful - some of these selling prices are based on a 25% equity share with the rest either interest-free loan or below market rent.
I recently discovered that the flat I sold when I bought FatBigot Towers in 1993 is currently on the market.
Because the market had bottomed out by 1993 I took a loss when I sold for £74,000. About 5 years ago the chap who bought it from me sold it for £190,000. Not a bad return over 10 years and the fattest part of the bubble was nowhere in sight by then.
Now it is being marketed at £355,000. Looking at what else is available in the area and what has been achieved around there recently, somewhere between £275,000 and £300,000 looks attainable. To get it back to 2004 levels will take such a big drop it might never happen in decent roads in decent areas.
I have no doubt the national average will fall back to 2004 levels and possibly further. In some places prices will fall by astonishing percentages.
The next few months are going to be brutal.
I voted for June.
TFB, are you sure he sold it for £190,000 only five years ago, not maybe six or seven years ago?
MW - Agreed about the misleading advertising, but this appeared to be 'the price'.
IMHO it's about what they are worth if valued on a rental basis of say £600 p.c.m.
They will never say that. They will just say that house prices are still higher than they were ten years ago.
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