Will there be a global housing price crash/decline?

[Newbie 0]

It seems that property, particualrly in the US and Europe (particularly the UK) has inflated 300% or thereabouts in the last decade. I personally don't recall a bubble of this size occuring ever before. Do you think there will be a housing crash and if so, is this such a bad thing? (it would mean first time buyers could get on the rung, allow 2nd and 3rd timers to move up etc).

"Skydiving is a door"
Happythoughts

[wmw999 2,541]

Depends on where you live. My house has appreciated well under 100% in 18 years. I sure hope that the bust (which will come for some of the markets) doesn't take my house's value with it. Probably will, though. But I'll still be able to live in it.

Most everything that's not inside cities between the coasts of the US really hasn't appreciated all that much.

Wendy W.

There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown)

[BIGUN 1,419]

Not till the price of oil takes a downturn.

Nobody has time to listen; because they're desperately chasing the need of being heard.

[DJL 235]

It's exactly as likely as the world's population stopping its growth.

"I encourage all awesome dangerous behavior." - Jeffro Fincher

[pincheck 0]

only time it really matters is if you need to sell or want to, otherwise its academic as the cash is pie in the sky and i don't waste time thinking about it.

Billy-Sonic Haggis Flickr-Fun

[Newbie 0]

Quote

only time it really matters is if you need to sell or want to, otherwise its academic as the cash is pie in the sky and i don't waste time thinking about it.

Or when you are looking to buy your first property too, surely?

"Skydiving is a door"
Happythoughts

[pincheck 0]

true but it has always been hard for first time buyers in the UK. the government changes over the last 20 odd years have not helped any either.

Billy-Sonic Haggis Flickr-Fun

[SpeedRacer 1]

I don't think there will be a housing price CRASH. real estate isn't like stocks. A business stock can go from 150$ per share to near nothing pretty fast.

But a house always has intrinsic value. And it is very difficult for the price to plummet very much, because everybody still has to pay off their mortgages & simply will not sell below a certain point.

So, unless it is discoved that your house was built on a toxic waste dump, the price probably won't plummet. It might just stabilize. Or at the most go down in price maybe 5% or so. That's not likely to happen where I live (Frederick, Maryland): We've got a strong economy & lots of hi-tech jobs around here.

Speed Racer
--------------------------------------------------

[wmw999 2,541]

In 1984 there was something of a crash in the local (Houston) housing market at least. Prices did go down, and houses sat unsold for years. I believe this happened in other parts of the country too.

Wendy W.

There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown)

[BETO74 0]

To add to your post, It is possible to loose depreciate more than what is worth I know people here in Fl and California in 1980 that had to sell their property for under they bought it for, loosing money unlikely, but possible.

The real state boom has to do with many factors as is explain in www.preconstructiondeals.com the more significant one is the baby boomers been in an age were they are retired or buying a house I think the younger ones are 45 yrs old. Real state value obviously depends on the location so far in FL they believe affordable housing under $500,000 that is tending to go up in value between 15 to 30% a year depending again on the location, anything pass the half million point is tending to gain little or not at all sometimes having to sell for less than expected but remember in pass 3 yrs the equity on this houses actually all property went up 30% a year so is not really a loss more than an adjustment in prices i.e I have a friend who bough her house for $ 145,000 5 yrs ago now valued at $650,000. I bought my first property 4 yrs ago then my second one making between 25% to 30% in a year, I just purchase in a hot area in West Palm Beach and I don't think I'll be making near as much or any more than 15% next year when it's done build.

My believe is slowing down but real state is a better investment than the stock market It will really slow down when the generation behind the baby boomers that is 30 or so yrs old reach retirement age since the gap between generations are literally millions of people who will pass away leaving a smaller generation behind.

http://web.mac.com/ac057a/iWeb/AC057A/H0M3.html

[briguy 0]

There will never be a global price crash. the markets are regional in nature, ever notice that there are 'good' neighborhoods to live in and 'not so great' ones?

it's all about location.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~