whats going on with the house prices are they going to drop within the next couple of months?

Question

i am hoping to put my house on the market with a month and i have read in a newspaper that the house prices are going to drop is this true ? i have to sell due to money problems and the house i live in is too small for my husband and i and two children. if they do come down is it going to be a dramatic fall as if this does happen we are screwed.

Answer 1

With a Presidential Election coming up in 2008 the Bush administration is pumping money into the economy to make the economy look better.

There will be more people looking to buy this spring.

I recommend, if you a planning to sell, wait until spring when it warms up and the grass starts growing again and the trees are in full bloom. You house will show better then, people will be more optimistic there will be more buyers and more competition for your house.

Now is the time to get the inspections and make the repairs. You will get the best prices now. Contractors do not have much work right now.

I recommend that you get a roof inspection, inspection of the structure of the house, the plumbing, heating system and electrical system and the foundation. Also get a termite inspection, and inspection for water damage and an inspection for dry rot.

The people who will pay you the most money want a house that they can just walk into with no repairs to make.

I recommend that you have all the recommended repairs done before you put the house on the market and use that as a selling point that all of the inspections have been made and all of the repairs have been done. You will get more money for your house if you do.that.

I wish you lots of success!!!

Answer 2

Well firstly they have fallen in price in certain areas already, but just as when prices were increasing rises were not universal or all at the same % so any fall will be the same.

The main issue is will it be sufficient to cover the amount of debt (mortgage) you have outstanding, that will usually depend on how long you have held that mortgage, if under 5 years you are unlikely to have paid off much of the capital (or if you took an interest only mortgage).
If you took a repayment mortgage and have been living in the same house for 10 years + then the rise in prices plus the payments made will give you a reasonable amount of equity.

You should also remember if your house falls in value so will others. You say your house is too small and you have money problems, well with respect even if house prices continued to rise you would still be in the same (if not worse) situation.

Please go to the citizens advice bureau and get some debt counselling/options, there are lots of choices, but first if you are having problems paying your mortgage talk to your lender and see if they can give you some breathing space. Then see the CAB.
Start by making a list of all your outgoings (and that means every penny you spend) Make a note of everything you spend in a week, over a 4 week period so you take in regular bills.
Then list anything else you pay quarterly.
Then list anything you pay annually.
When you have this information cross match it with your income.

Look at the 'gap' between the two then go down your outgoings and start to cross off the things that are not essential.
eg
Bingo
Pub
Cigs
Booze from the supermarket
Vists to the cinema
Etc.Etc.
Yes may sound awful but you need to get to the situation where you list the payments you make in order of priority and they don't exceed your income.
So.
1. Mortgage./ Food 2. Gas/Electric. 3. Water 4. Credit card (in full)
5. Council Tax 6. TV license (which can go if you get rid of TV) 7. Clothes (essential only) and so on, you will be surprised once you do this how quickly you start to get your finances back under control and start to have surplus cash.

Only if you still have a major imbalance (perhaps due to unemployment) should you seek more extreme measures.

Answer 3

First of all, make enquiries about the housing market where you live. (by the way i am talking UK)

There are now different housing markets all over the country these days.

If as you say, you need to do this due to money problems then I would suggest that you do this as soon as possible as the forecast for the future is not good.

Housing prices have fallen for three months in a row now and that hasn't happened for over ten years.

The forecast is that there will be another 70, 000 homes that will be re-possessed next year.

Although the last time their was a crash in the housing market, the interest rates had gone up to 15%, and obviously this was an enormous amount to repay on the morgages. This time around it is not so much the interest rates that are high but that the housing prices are unbelievably higher than they were then, so this is the big drain on your money.

If, as you say, you have money problems then I think it would be advisable to sell now.

Please dont gamble with your future.

Best wishes to you.

Answer 4

It won't be a dramatic drop, It's because of the current financial climate, The government don't want people spending, so interest rates increased and stupid HIPS packs were made compulsory when selling any house which has made the housing market has dry up, and with no properties in the market to sell, it means that supply and demand has gone down plus lenders have gone ridiculously careful about lending money. They can't see beyond the end of their noses,no one in the lending industry has any sense and if computer says "no" then that's it. As a result There will be more and more Bankruptcies and Iva's plus they can't see that their source of income will dry up as well, because when people have taken out bankruptcies & the longer people go without borrowing the less likely they are to start borrowing again and realise that they are better off without debt hanging around their shoulders and not spending beyond their means. Then the government will be moaning about us not spending enough.

I do hope things work out for you, good luck with your future finances.

Answer 5

I think its just scare mongery and the housing market will fluctuate like it always does .....spring and summer are busier than winter and the more or less property's on the market effect how fast they sell. If prices supposedly drop I think people will just stay put and not try to sell.Who would sell if they didn't have to?
Interest rates have just dropped and they are no where near what they have been in the past..I remember paying 8 1/2 % so now seems a bargain!

Answer 6

Nobody has a crystal ball with guaranteed results.

However it is likely that house prices will drop over the coming months and possibly year or two. One of the causes of this is that there is less money available to lend (see Northern Rock, for an example) - which will ensure that the difference between the rate set by the Bank of England (which reduced .25% this week) and the rate available on borrowing will be larger.

If you are selling in the next month or two you may not be seriously affected...

Best of luck for the future.

Answer 7

I presume you are thinking of buying another house . If this is the case it is still better for you that the house prices fall .
If your house price goes down the next one you buy will be cheaper to buy , with less stamp duty to pay and estate agents fees you are on to a winner.
House prices falling can only be a good thing unless you are selling up and not buying again.

Answer 8

That is the chance you take when you buy. Too many people think the price can only go up. Over the long term the trend is always up, but there are always blips. It only really affects people who want to sell. Sadly, this means you, but what is bad for you is great for someone else. The buyer is more able to afford it.

Anyway, I am sure you will still make a profit.

Answer 9

The news papers are the ones that have single handily made the market grow at its fast pace. In turn they are the same ones that are killing that same market that they had built up so fast. So i say stop advertising with them and see what they have to say!

Answer 10

It won't drop much there are too many people out there with the money to pay upfront for a buy to let house, interest rates don't affect them.