How far will house prices fall?
By BubblyIan
@BubblyIan (750)
December 15, 2008 5:08pm CST
Latest doom and gloom stories indicating a 30% fall from the highs earlier this year - what is your prediction?I think house prices will halve and even then they will still not be very affordable.
A combination of 'wait and see' by purchasers, loss of competitive deals by lenders and doom and gloom by the media has conspired to hammer the housing market. It was massively over-played for the last few years with average mortgages being ten times average earnings - it could not last - and the bubble had burst.
Are you affected?Are you stuck wanting to move but no buyers?How long will you have to wait?http://news.bbc.co.uk/2/hi/business/7782939.stm
1 person likes this
2 responses
@aprilsue00 (1991)
• United States
15 Dec 08
I believe that house prices are going to keep falling. We haven't even seen the worst yet. I was watching a news program last night that said the foreclosures that he have been seeing is only the tip of the iceberg. What we are seeing right now are the subprime mortgages going into foreclosure. Apparantly there is another type of mortgage, the arm mortgage that haven't even begun to go into foreclosure. I believe that it is going to get worse before it gets better. But we can make it through this. I know it is hard for a lot of people but if you keep praying and stay positive something has got to give.
1 person likes this
@BubblyIan (750)
•
15 Dec 08
I think you are correct.
In any case, us slightly older guys have seen it all before - in the period 1988 to 1993 a similar thing happened and we got through that as well.
@underdogtoo (9579)
• Philippines
16 Dec 08
I am not in the real estate business but I know someone who makes a living selling real estate. I wonder how this affects busines?
