Archive for December, 2007

Housing Market Crash of 1992 and 2008

Monday, December 31st, 2007

Question asked at mortgageguideuk.co.uk

Readers Question:
How can i compare and contrast the current UK Housing market with that of the 1990s. What are the key drivers for the markets and the outlook for prices?

The 1990s saw the end of a housing bubble and a serious house price crash in the year 1992.Leading up to the housing market crash of 1992, there was a period of economic boom, and corresponding boom in house prices (especially in London and South East)The difference in the late 80s and early 90s was that the Economy experience a real inflationary boom.

Economic growth reached over 5%, but, at this rate the growth caused inflation to rise to 10%. Therefore, the government felt compelled to start reducing inflation.They felt the best way to reduce inflation was to join the ERM (exchange rate Mechanism). To cut a long story short, the inflation of 10% and membership of the ERM required interest rates to rise very high to 15%. At 15% mortgages became incredibly expensive and so there was a record rise in defaults and home repossessions.

People stopped buying and house prices fell by 15% (More in London and South East).

Housing Market Crash of 1992 and 2008 | Mortgage Blog

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House Buying and Moneysaving Tips

Sunday, December 30th, 2007

House Buying – Moneysaving Tips

Quote:Originally Posted by AndrewSmithI have some excellent tips on how to negotiate with the Agents when looking to offer what you want to pay for the property

We have the “House Selling – Money Saving Tips” guide, but I have realised that we are sorely lacking in the House Buying equivalent.There has already been demand from some users for AndrewSmith (Independent, Whole of Market Mortgage Advisor to the Stars) to deliver his top tips on how to negotiate with agents.

So as per his offer on a separate thread, he has accidentally volunteered himself to start the ball rolling on what I am sure will be a very popular thread.

House Buying – Moneysaving Tips – MoneySavingExpert.com Forums

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for those with there house for sale how low are the silly offers coming in at ? – MoneySavingExpert.com Forums

Saturday, December 29th, 2007

Here’s a post at moneysavingexpert.com from an irrate property owner who thinks it is stupid of people to offer 20% below what she paid for her property:

I have heard from a few friends who have had really low offers and i have too, ok so the market is slow but what makes people think we will give our house away !!!!!!

im on at 140k (under recommended price), been on 4 days and got a stupid offer of 115k !!!!!!

First reply:
I wouldn’t consider any offer as stupid.Why not counter offer and meet them half way, ask for 127k. Thats what i would do, i wouldn’t just dismiss it, not in any climate.I am become death, the destroyer of worlds.

for those with there house for sale how low are the silly offers coming in at ? – MoneySavingExpert.com Forums

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