Property Price Crash

[Barquentine]

How big was the property price crash in the 1990s and how big do you think it will be in 2007-8?

[Hawkwalk]

some reports say prices will rise by as much as 8% this year

[Pippa68]

I don't think there is any sign of a crash this year..unless interest rates hit 15% again!

[cascarelli]

No, prices are on the up

[Octavius]

In Nov 1979 the base rate was 17% and because this level (between 14 and 17%) was sustained throughout much of the 80�s it led to the eventual collapse. As Pippa has said the Bank of England base rate hit 14.88% in October 1989. This caused a lot of people to have houses repossessed as they couldn�t afford the mortgages, and buyers couldn�t buy property at the level of prices because they could not get mortgages that were affordable. A lot of people also lost jobs so the property market was saturated, but there were no buyers. Institutions ended up auctioning off repossessed homes for a snippet.

In Nov 1979 the base rate was 17% and because this level (between 14 and 17%) was sustained throughout much of the 80�s it led to the eventual collapse. It was at its lowest in July 2003 at 3.5% and has increased by 2% since. The current level of 5.5% was also in place in Oct 1977 so a lot can happen in 2 years.

[Octavius]

I don't know why that paragraph is repeated, perhaps the Ed can Edit.

[dasherman]

I think there will be a crash in the next year or two as the current level of increases in base rates and house prices can't be sustained for ever,unless wages show a significant rise aswell.

My guess would be about 10%.

[-Zorro-]

In November 2007 property prices will crash by an average of 15%

[Octavius]

Hmm, should I sell up now and go into rented accom until November I wonder...?

[-Zorro-]

There was some Professor of Economics telling everyone to do exactly that 3 years ago....since then prices must have risen 50%

[miseryguts1]

see

www.housepricecrash.co.uk