Now that our economy is teetering on the brink of recession do we think this will be a global phenomenom? I read on ghpc that America and Australia are already seeing very large price crashes. Will other countries be affected too?

Who knows? With Japan starting to reign in the cheap money they've been offering, the banks won't be able to offer such cheap credit, this in itself will have an impact, but who knows how much.

I guess US housing market is being affected by the FED increasing the rates to counter inflation.

Of course we don't have inflation in the UK because anything going up in price is instantly removed from the CPI basket.

Well, if it crashes it crashes, if it goes up it goes up, and if as most economists predict it stabalises, I am not bothered.

I will only start to worry when my mortgage goes up and my salary goes down. And if I lose my job, well I am screwed anyway.

Anything can happen, you can control your destiny, but you can't control the Americans!

Have you not heard the expression 'when America sneezes, Europe catches a cold'?


Look at the stock markets.

quote:

Originally posted by filigree:
Have you not heard the expression 'when America sneezes, Europe catches a cold'?


Look at the stock markets.

Erm yes. I wasn't born in a barn. But that has no relevance on my position, rises and falls are not my concern. Are you trying to panic me or something?

no

Well, my Daughter has just sold her house in Denver, Colorado in just under 2 weeks and also property is selling exceptional well in the American Mid West at the moment.

You know, I was just thinking yesterday it was weird how all the HPCers had disappeared from this forum....

quote:

Originally posted by decca:
You know, I was just thinking yesterday it was weird how all the HPCers had disappeared from this forum....

Well, I for one absolutely refused to get into the House Price Crash debate which was being posted onto this Forum by HPC'ers.
As far as I was concerned they had their own dedicated Website where they could talk themselves to death on what was, or not, going to happen.
The fact of the matter is they were absolutely wrong on all counts, certainly over the past 2 years anyway, and property prices have actually increased against all expectations and "expert opinion".
I talk to Agents all the time and if anyone is in any doubt about money supply there is a lot of Dosh still available for property buying.
I would agree that in some cases there is going to be a lot of hard luck stories about people going bust and forfeiting mortgages repossessions etc.etc. but there always will be even during the boom times.
The 1990 crash was well publiscised at the time but believe you me a lot of people were still making good money from property out of that recession.
I've said my piece on the subject and I'll say no more.
Mel.

Anyway what's the point in worrying about something that you can't do anything about.

There's been talk of a slow down or firming of prices for the second half of the year in the UK.
I think you'll find Filigree that the US isn't seeing "prices crashes" in fact there's been more of a slump in the UK than the US - They've predicted a slowdown in the US because the prices rises have been very steep and it needs to level out in line with peoples incomes.

Thing with the US, its so huge and diverse that any slump/correction/crash etc isn't going to happen in all areas.

As for Mel stating the UK hasn't crashed yet, he's right, but there are many locations seeing corrections currently. I believe Ireland and some parts of London are still seeing rises and they negate some of the corrections were seeing in other areas. It's a bit silly to assume the whole UK will correct or rise at the same time unless something big happens to affect confidence or the economy.

Saying all that though, with IRs more likely to go up, then I think we can say bye bye to any big price rises in the near future.

quote:

Originally posted by reverand:
It's a bit silly to assume the whole UK will correct or rise at the same time unless something big happens to affect confidence or the economy.

ODPM house prices have been plotted here, you can select which regions you want to see:

http://www.houseprices.uk.net/articles/odpm_regional/

Shows the south east and south west have been pretty flat since 3/4 of the way through 2004.

Prices rose from the late nineties to 2004 round my way. Your 50k in '99 would have sold for around 230k five years later round here. It's crazy to expect those sort of returns for another decade, that's how house prices go.

Even so if you'd have bought in the trough of '93 with the finger waggers in full flight and sold ten years later you'd have done very nicely thank you.