House prices fall to 2004 level

[nunheadbelle]

As predicted, house prices are still falling; good news for those who can afford to put down 15%, 25%, 40% deposit for a mortgage, still not good enough news for those who can't.

House prices at 2004 level

[tommyt]

I guess the key is when will they stop falling.

My feeling at the moment is that a 2 bed garden flat in ED costs

2007: ?320k

2008: ?275k

2009: ?250k

2010: ???

And it is the uncertainty of what prices will be in 2010 and 2011 that is worrying people.

If you look at the rental yield they should probably be worth ?220k, but if people are getting amde redundant and unwilling ot pay as much rent (I think rent has gone down in ED recently) then they are only really worth what people can and are willing to pay and we simply dont know waht that figure is........

[karter]

To fill in the blank...

2010: ?210?

[brash]

?210? Hopefully less! The sooner people stop using property as a cash machine, the better for all.

[Pagey]

I think the average price is very misleading due to the smaller number of sales , this distorts the figure. Some properties in the UK may drop to or are at 2004 levels, but the figures vary tremendously by borough to borough. New builds will take a big knock due to over supply and they're over priced.

Southwark flat prices have stood up well, in fact saw an increase of 6.8% for the last quarter . Some boroughs have seen a reduction of 20%_ e.g. Barnet.

You can check out the % price change by type of property by borough at:

http://news.bbc.co.uk/1/hi/business/7807724.stm

[louisiana]

Things to get worse in the US, according to this CBS 60 minutes video:

http://www.cbsnews.com/video/watch/?id=4668112n

Apparently sub-prime was only the half of it.

[matthew123]

I'd imagine that properties that are 20 minute walk to tube or train station will fall faster than properties only 5 minutes walk, similarly ex-local authority will be hit harder than victorian builds etc. One thing you can guarentee about the media they'll always report the extreme end.

Anyway Pagey that BBC link does no breakdown?

[Pagey]

Matthew123, BBC link, enter post code, then select the Borough and then click on the tab for flat, terraced etc to get the breakdown