tott1
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it is a overdue and needed correction in the market as home prices are so high that working families cant afford them with out over leveraging themselves. the correction will hurt some that sell or havetheir house repoed but those that hold on will see the values slowly come back up over time. |
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malibugirl
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Its a good thing if you are wanting to buy, but not so good if you are trying to sell! |
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Lisa T
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It's good news for first time buyers, but those who have just bought their houses at top prices might not be so happy as their homes won't be worth the amount that they have paid for it. So it will be a big problem if they want to sell. |
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Stephen M
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depends on your position. Its great for me because i might actually be able to afford something if the prices come down. Not so good for my brother who just bought a house though. |
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Jade
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its good for buyers
bad for sellers |
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Ollie
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Hi.it will be good for first time buyers however it could leave a lot of people with negative equity. |
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mrsclaura
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its bad for me i have just bought a house and if they continue to fall i will end up im negative equity. |
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Group Captain Lionel Mandrake
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too much is made of negative equity, as long as you can afford the repayments don't move. |
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Noodle D
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It is good if you are not a homeowner. If you have recently bought a property you risk going to negative equity. |
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bud68
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It is a painful but necessary adjustment to take the recent speculative inflation out of the market. |
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Milanese
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Overall, it's bad for the economy because it affects consumers confidence and consumption.
For several years, people were able to tap on their home equities and put that money back in the productive system.
Less equity, less spending, less money in the economy, less income.
Because of the real estate crisis, we are on the verge of a recession.
Is that good anyway?
We may think it's better that prices get lower when we are on the buying side, but worsens the whole economy.
And, in most states, the decrease in prices will be less than 10%, what doesn't increases greatly our buying power because it's not a huge difference on the mortgage monthly payments. |
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Butternut27
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Good if you are a first time buyer , investor or up grading
Bad if you bought at a hyper inflated price recently
But overall its a good thing it was just out of hand esp in London...also there is too much consumpation loads of fools taking money out of their houses to spend on holidays, debt consolidation etc...wealth of a country should not be based on debt...now its all unravalling...there will be carnage come Feb 2008 as banks finally work out what they have lost... |
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**Caitlin's Mummy***
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House prices arn't really dropping.. Well not in my Estate Agents.. If they are its by a couple of k nothing more than that, and because of the drop in interest rates last week (0.25%) it should bring things out more even.. Lets hope so anyways.. xx |
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ste_pej
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House prices aren't going to fall too far, the economic conditions are completely different now than they were when prices crashed in the early 90's.
There will be a period of slight decline followed by a levelling off for most of 2008.
Only worry about negative equity if you're thinking about selling soon after you've bought... house prices always rise over time
All imho of course |
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Sahara
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No. I don't think housing should be fluctuating like it is now. It shows that there is too much speculation in the housing market and it's been exploited. It also shows that our economy is really in danger. Housing is a stable and supposed to be a good hedge against inflation. It's a less liquid investment. My husband and I own a home in Massachusetts where home prices are ridiculous. There are quite a few people living with extended families because they can't afford rent or to buy a home. The housing industry affects other sectors as well. It's a very bad thing. We are in a recession. People who are more affluent are always slow to feel the effects. People at the bottom feel it almost immediately. |
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