The House Market

[Moonhead]

How likely is it now that the house market will "crash" or that house prices will drastically decrease within the next 6 months or so? I have read various news stories and articles, so its now ABers personal opinions I'm after thank you.

[Moog]

If you find out let me know Moonhead!

In my opinion it's unlikely to crash in the next 6 months and prices will remain stable.

I reckon that there are a whole raft of people who are itching to get on the property ladder but can't quite afford it at this point, as soon as property prices fall slighlty then these people jump on board and prices are driven back up again. So in the short term prices will remain bouyant [keeping with the raft theme here] even if interest rates do rise a couple of points, furhter than that I don't think anyone can say.

[dj_ajax]

erm.. i think its a bit hopeful that will happen in the next 6 months although if the Bank of England raises interest rates a few more times it will cause people to be unable to pay for their mortgages. This is turn will cause people to sell their houses and so with more houses on the market they will decline in value. I think thats right if im not sorry. At the moment the house prices are still rising with house price average at the bargain price of �160000.

[saffstar]

I hope so, it's the only way I'm ever going ba able to afford my own house!

[norfolk boy]

Its very unlikely the housing market will crash in the near future as the economy is too strong.The best and cheapest way of buying a house is on an interest only loan.If you bought a 4 bedroom house for say �120,000 in 25 years this will amount to a small car loan.you then sell and down size to a 3 bedroom house.

[Moog]

Norfolk Boy I know you live in the sticks but it's been a while since a 4 bed house for �120K the tiny on bd flat I rent would cost me �30K more than that to buy!

[BenDToy]

I nearly "dropped out" of the market over 2 years ago because so many people were predicting a price crash then. If I had, then I would have missed out on a major rise in the value of my house. Over time property is the one investment which seems safe. Short term falls don't matter to most people. I think that interest rates are still relatively low and there is unlikely to be a huge drop of the scale of the one in the late 80s.

[ali_alic]

I doubt the market will crash. Oil is still no where near the cost during the last crash - and anyway - we have an election soon!!

[secretspirit]

I think it depends on the interest rate. I tell you what, if it keeps going up I'm selling my house and moving into rented - at least they don't up your rent month on month!

[JohnPPotts]

I doubt it'll happen in the next 6 months but I'd say it's a racing certainty in the next 2 or 3 years. Estate Agents may be convinced that houses prices can only go upwards, but they were convinced of that in the late 80s too. I recall a couple of weeks back somebody saying that house prices are affordable even if interest rates rose by a whole percentage point - he neglected to consider what would happen if they rose by more, which in my opinion is fairly likely.

[norfolk boy]

Well moog there's no need to get bitter and twisted.If it makes you happy replace the �120,000 in my example,for a 4 bedroom house like mine that cost �472,00.

[norfolk boy]

Sorry Moog,Thats �472,000.