house prices.Will they continue to rise in price for the next 10 years.?

Question

The cost of buying a home has skyrocked in the last 10 years.
I mean the prices have got of the Stairs and into the Lifts.
Can this be sustained for another 10 years.
I know the market is slowing down and i understand that people are now using there credit cards to pay the morgage.

Answer 1

10 years is a long way off. House prices to keep rising is a ridiculous notion. First time buyers are already priced out of the market and if they can't buy at the bottom, people further up the chain cannot move. Result, everyone stagnates, prices will fall.
I remember these conversations in the 1980s that houses will increase in value year on year.They crashed in 1990. The only people who want this to happen are the homeowners and estate agents. A home is where you live, it is not a form of currency.
You may sit around the dinner table saying how much your house has gone up in value, but so has everyone else's.
From working in the CAB, I can tell you that repossessions are on the rise, mortgage arrears are the norm and families are struggling to pay for a overpriced pile of bricks.
The market needs a serious correction to bring house prices in line with earnings. Huge city bonuses are the cause of this rampant inflation.
Everyone talks about housing shortages and the need to build more homes, yet there is enough empty properties in this country to house everyone.
The property I am talking about are the ones above shops, the empty houses that have been empty for years, the office buildings that have no further use. All these could be bought into use, even for a limited period. It won't be done because too many people make too much money from overpriced houses.

Answer 2

I can say from personal experience that you just have to watch for the good deals. I just purchased a home for much less than the market value. The market isn't so hot right now, so you can find properties for less. As far as the cost rising on homes..I believe they will continue to rise steadily just as everything else does due to inflation. Well, unless you consider gas prices that change drastically from day to day! haha :) But, that is my opinon, so I hope it helps! :)

Answer 3

They will continue to rise as they have for the past 100 years, although the level of appreciation will likely slow for the next year or two. Keep in mind that the housing market goes through cycles, but overall it is a continues rising staircase.

Answer 4

Home values have actually DECREASED in the past six or so months, thanks to the subprime lending fiasco and the resulting foreclosures.

The sale prices of real estate are based upon many factors, including desirability of location, costs of NEW construction (that reflects on the 'used' market) and a host of other issues.

Frankly, the cost of a new average house in an area where land costs are minimal still represents a good value.

Answer 5

Listen to the older ones whove been there- the prices are artificially high- soon the balloon will burst and prices will drop like a lead balloon-people say they wont....but they will

Answer 6

interest rates have decreased lately, but they will skyrocket later. it's a ploy to tie up your money, a setup by the federal reserve to kill the american dollar. financing anything at present is a bad move to make. if you can't afford a mortgage then downsize to what you can afford. however, your money is not necessarily secure in real estate any longer.

Answer 7

are you kidding? prices have been going down lately man, pay attention! But they will increase in the long run.

Answer 8

The prices will drop by 80% in next few days.

Answer 9

Yes (in the UK) because we aren't building enough houses and the population is still expanding.

Answer 10

in UK they will rise as the demand is huge and there is no much space to build- as for the Americans - they will suffer more.