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The average price of a UK home has fallen to levels not seen since August 2004, according to the Halifax.
Prices declined by 2.2% in December, to bring the average cost down to £159,896, the lender said.
For 2008 as a whole, prices fell 16.2%, the biggest annual decline since Halifax began keeping records in 1983.
With further falls to come this year of around 15%.
Nationwide has said that it will not pass on any further interest rate cuts .... and Bankers state that lending will be harder to get through 2009 than it was in 2008!
Personally, the lower property prices fall, the happier I will be
Pete, you "predicted" it in 2000 and every year since
Waiting 8 years to be right, you could have bought and sold on the rise and before the fall and already cleaned up like i did if you'd been more on the ball
Now you'll just be scrabbling around for crappy repo's along with every other chancer
Looking at YOY falls, the decline increased towards the back end of 2008. I predict another 20% off this year, as repo's kick in, caused by rising enemployment and lack off affordable mortgages.
Maybe the bottom of the market will come in 2010. But I doubt it. We could see > 50% off peak by the end of 2010.
I'll be looking to buy post 2010, but will want to see about 6 months worth of flat house prices before jumping in.
it doesn't matter how much anyone's house is worth, as long as the can afford the payments - it's not a liquid asset!
it's not been in most peoples' interests for properties to go up in value - the more yours goes up, the more a) you kid yourself you're better off (you're not) and b) the bigger the gap to a bigger house should you have aspirations on trading up one day.
TBH who cares unless you are being forced to sell it ???
If you have bought a house in the last couple of years, and unless you have a very short time to go on the mortgage, it will be worth more than you paid for it when the mortgage ends, even taking into account the interest you have paid.
Then minus what it would have cost you to rent a house for the last 25 years, which would have been the alternative as you have to live somewhere, and you're even more on top.
Property is one thing that it is very hard to lose money on as a long term investment. Short term I agree that people arent going to be able to make a quick buck like they have done in the last few years just by buying a house and sitting on it and reselling 6 months later.
The Property Ladder programmes illustrate the decline perfectly. 12+ months ago people were kidding themselves that they had 'added value' by doing places up ..... when, in reality, all they were seeing was the climb of the general house prices!
The later programmes are showing that people are now making losses very easily ...... now is not a good time to buy and 'do up to sell' ...... it could, however, be a good time to buy if you want to keep for the long term.
Depends on where you live in the country, Up here in Aberdeen we have seen around a 2.1% fall from its peak.
So nothing to shout home about and levels are back at Sept 2007
Factor in how much you may have blown in rent and compare it against the 2.1% the houses have generally fallen by, then its not all bad news for everyone.
So much variation all around the UK, its stupid to state prices have fallen back to 2004 as a whole, Not you PSL, the press in general.
I wonder when the "average" house will be 3.5x the "average" salary?
Should an average singular wage be enough to afford an average house or is the theory flawed?
I personally think a singular average wage should buy a 2bed flat and a couples annual wage should buy the average home.
Average annual income is reported to be £37k, multiply this by 3.5x and you get £130k, add the 10% deposit they will have saved and house prices should be around £145k.
C&G are currently still offering 5x joint so lending is not being restricted much.
At a LTV of 90% ... that would put the average house price at about £125,000 - so, quite a way to fall yet then?
£32k is indeed the average salary of a male in FT work however as a whole counting the PT workers and lower paid female workers this drops back to £26k as an average.
Recent report by ONS that surveyed just over 20m employees P60 so data i would say is accurate.
Depends on where you live in the country, Up here in Aberdeen we have seen around a 2.1% fall from its peak.
So nothing to shout home about and levels are back at Sept 2007
I think you're in for a surprise shortly. I've been keeping a close eye on it and Flats are down at least 10% from what I've seen. If its not cheaper, its not selling.
Biggest reduction I've seen on a house is fixed price of £400k down to £350k and its still not selling. Nice house, good location aswell.
Last quarter selling prices will be published this month, which will make interesting reading.
I have my eye on a property which was placed on the market at an asking price of £349,950 in July 2008.
It is now on at £209,950 .... and has been for about 5 weeks now, not sold - another agent has now been employed in a desperate attempt to sell it ... probate sale.
just 6 months ago it would have been snapped up at £209,950 if not more - it shows the sign of the times that it sits there, empty. It is generating interest as it is nicely situated in an expensive part of the UK .... but, it will only sell if a low offer is accepted.
House Prices Now At 2004 Levels
