Comments on: Housing Market Crash of 1992 and 2008

By: chris sivewright

chris sivewright — Thu, 27 Mar 2008 17:01:44 +0000

“At 15% mortgages became incredibly expensive and so there was a record rise in defaults and home repossessions.”

No.

Interest rates were at 15% for a matter of hours.

I remember…I was teaching Economics at Cherwell tutors at the time.

By: How Much Have House Prices Increased By? | UK House Prices

How Much Have House Prices Increased By? | UK House Prices — Mon, 31 Dec 2007 15:25:33 +0000

[...] Most commentators predict that national house prices will fall. Although, as I argue in this post – Housing Market crash?, I feel a crash is [...]

By: Tejvan R Pettinger

Tejvan R Pettinger — Mon, 31 Dec 2007 10:59:06 +0000

Hi Frank,

Thanks for comment, I think you make quite a few valid points.

However, the continuing shortage of supply, will be important factor.

By: Frank

Frank — Mon, 31 Dec 2007 08:59:54 +0000

Macroeconomics factors will have an impact on affordability, but the greatest impact on house prices is CONFIDENCE in the property market.
The widespread belief that ‘the only way is up’ is simply no longer there, unless of course if one is prepared to stick with a property long term…. which is not the case for 1st time buyers, EU immigrants, and young families who tend to have a short-medium term view because they want to move up the ladder.
“Rent is money down the drain” – heard that 1million times…. however, it is now much cheaper to rent a property than to buy it with an interest only mortgage, which is still money down the drain… I know many young couples in very well paid jobs & lots in savings than rent because it’s the cheaper & worry free way to have use of a suitable property. Also, let’s not forget that many of the EU economic immigrants that are supposed to keep the UK economy strong and maintain property demand high come from countries where owning a property is not a ‘must have’ – most of them do not buy into the they are British obsession of being a property owner at all costs. I’m one of them.
Property market will go down at least 5% next year.