All the signs are pointing to a crash like the boom and bust in the 80s.
2006-10-12 05:43:52 · 12 answers · asked by Anonymous in Politics & Government ➔ Government
The market is running out of first time buyers and the cost of a mortgage is way too high as a percentage of income so yes there needs to be a correction.
Whether we get a crash or not I don't know, if I could predict the markets that well I'd be a billionaire not a bank manager.
If there is a crash, fuelled by inflation and interest rate rises as well as house prices the forecasts I've seen suggest an economic depression worse than the 1930's.
Keep your debts to a minimum, don't buy what you can't afford/ save for and you'll ride out any depression. if you're in credit up to your eyeballs then you're screwed.
2006-10-12 08:32:19 · answer #1 · answered by phooey 4 · 0⤊ 0⤋
I do not think that there will be a crash however a decline maybe, people will once again be left with negative equity and therefore unable to move up down or sideways, this has an effect on jobs as people are then unable to move to take up positions unless the new job pays a lot more than their existing one. In a way it is like paying HP on a car that is no longer worth the money you are paying for it only on a larger scale if it is worth less than what you owe on it then you are stuck with it
2006-10-12 12:42:15 · answer #2 · answered by frchrisfgn 2 · 0⤊ 0⤋
I remember watching a television program about 3 years ago, when a so called housing expert was saying that there was going to be a housing market crash within 2 months, and his advice was to sell now and rent until the market "bottomed out" then buy another house. It"s a good job I didn"t take his advice. Would have lost loads. I think the market will slow, not crash.
2006-10-12 06:05:52 · answer #3 · answered by researcher 3 · 0⤊ 0⤋
there might be a house price crash, there might not. And it's incorrect saying "All the signs are pointing to a crash like the boom and bust in the 80s." like it's a fact, as it isn't. The truth is, nobody knows.
2006-10-12 05:51:57 · answer #4 · answered by Anonymous · 0⤊ 2⤋
a dip is more likely to a crash considering all factors and house prices will always show a general upward trend.
there is only so much land and the population is increaseing
2006-10-12 07:32:10 · answer #5 · answered by supremecritic 4 · 0⤊ 0⤋
Probably not a good one in the shorter term but it is something that has to happen to rebalance the economy.
2006-10-12 05:49:21 · answer #6 · answered by LongJohns 7 · 0⤊ 0⤋
Cripes! I guess a lot of crying and running out into the streets?
2006-10-12 05:49:39 · answer #7 · answered by Anonymous · 0⤊ 0⤋
alot of people will lose there houses as theyve borrowed more than they can afford to pay ,the overal effect i dont know but i think it will benefit me.
2006-10-12 08:05:18 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I might finally be able to afford to buy a house.
2006-10-12 05:58:24 · answer #9 · answered by jackie 2 · 1⤊ 0⤋
it will never happen, we have learnt from that era and that was conservative era too. only thing is prices will fluctuate but in general prices will rise with house in ten yrs time maybe 300000 average, but this is reflected on more and more millionaires every yr, ppl generally more well off
2006-10-12 05:53:04 · answer #10 · answered by dennis s 3 · 0⤊ 2⤋