2007-10-11 00:01:37 · 6 answers · asked by James T 3 in Business & Finance ➔ Renting & Real Estate
The situation if fluctuating at the moment, but the general consensus is that they are going down.
Its all down to supply and demand. Because the interest rates have gone up, and the banks are a lot more careful about who they lend to, its harder for people to get mortgages. If they can't get mortgages, they can't buy a house.
Before the market was full of people looking to buy, so the house prices rose. Now, there are fewer people looking to buy houses due to economy, and so the prices are falling as theres less competition.
If lots of people are after a product, you can put the price up and make more money. However, if you have a product that isn't selling, you have to lower the price to hopefully persuade people to buy. Its exactly the same with houses.
2007-10-11 01:45:37 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Prices are reported to be falling at the moment. However this by an absolutely tiny amount.
What's really happening is a partial stagnation in the market thereby encouraging lower offers on properties.
There are in fact less sellers and less buyers than normal so the theoretical price drop is really a stand still.
2007-10-11 07:11:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Just depends who's doing the talking and what their motives are. For example a estate agent would never advise you to wait nor would a pension salesman say stick your cash in bricks and morter. Truth is we need a roof over our heads and a tenner in our pockets, it's hard to make a quick buck and you shouldn't gamble if you can't afford to lose so spread your money around. Property prices are a bit silly but I can't see any end until intrest rates rise to 12% again and you wouldn't want that unless you had a huge 'wad 'to invest
2007-10-11 07:23:01 · answer #3 · answered by friSbee 5 · 0⤊ 0⤋
It depends upon where you are talking about. Although prices may be generally moving downwards nation-wide there are areas that are pretty much deflation proof. Parts of London will never likely see prices drop at all and sales are still quite robust. Head north a couple of hours and things may change quite a bit.
2007-10-11 09:22:27 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Hi,at the moment there saying there going down.The market seems a bit unstable I personally do not believe it will last for long.It might be good for first time buyers & I wish them look.Yet if prices are dropping some people might end up with negative equity which is bad.Depends if your buying or selling on how you think its good or bad.
2007-10-11 07:08:13 · answer #5 · answered by Ollie 7 · 0⤊ 0⤋
I'm not sure if actual prices are declining, what is happening is that the rate of increase in prices is declining meaning that although your house may be worth more in a year than now, it may only be marginal
2007-10-11 07:17:48 · answer #6 · answered by Duffer 6 · 0⤊ 0⤋