Housing price crash in 2008

[Tam o' Shantie]

I've not had time to get my head around the mad media frenzy, so can people discuss it and I will come back to the thread once I have some knowledge? All I know is that if it is genuinely something to be worried about, then it'll probably affect me

[Chris]

House prices, in Aberdeen anyway, won't crash. They just might not rise much this year.

For prices to crash supply must exceed demand and there's a whole fuckload of houses and flats will need to be built in Aberdeen before that happens.

[Tam o' Shantie]

Ok perhaps I was exaggerating - but there has been a lot of media coverage of the possibility of houses losing value in 2008. As someone who was intending to both sell and purchase a flat before the end of the years I'd like to see what people's thoughts are on the likelyhood of this happening.

[Lucky Rathen]

I'm trying to buy just now and I'm being priced out of everything, so I'm actually hoping it drops, or at least levels out. There's so many stories from the past few years of people paying almost double the asking price for pissy little flats that need completely renovated.

[Chris]

I guess if some big financial disaster happens (recession, another northern rock or the tories got into power in a snap election) then prices might fall but I don't think they'd fall by much and not for long. Not here anyway.

I'll be remortgaging this year so I'm keeping a close eye on things as well but I don't think there's much to worry about, especially with regards to flats.

[Chris]

Originally Posted by Elwood Cobra Kai

I'm trying to buy just now and I'm being priced out of everything, so I'm actually hoping it drops, or at least levels out. There's so many stories from the past few years of people paying almost double the asking price for pissy little flats that need completely renovated.

One of the flats above me went for 30 or 40 percent over the asking price around this time last year and needed completely gutted. It's probably worth double what the guy paid for it now.

[Lucky Rathen]

Hmm, my mate offered 50% over the asking price for a flat in town and he wasn't even in the top 5. It's pretty mad just now, I'm renting until it calms down a bit, in saying that I've had a big pay rise since I last went to see the mortgage people so I could probably get a better one now, still I don't want to take on more than I can reasonably handle with regards to payments.

[daveofficer]

yea i'm looking to remortgage this year too so will be monitoring the market quite closely but as chris says the north-east of scotland is different from the rest of the country as house prices are still rising here as there's a lack of supply. the market has stalled briefly but i'd imagine it'll pick up again in the next couple of months. shame they didn't drop the interest rate today as that might have made remortgaging a bit easier but we'll just have to see what it's like in the summer.

[Chris]

Originally Posted by daveofficer

yea i'm looking to remortgage this year too

Was your mortgage only locked for 2 years?

[daveofficer]

Originally Posted by Chris

Was your mortgage only locked for 2 years?

yep.