Economy & Housing Market

[Smurlos]

So what exactly is going on at the moment?
I hear all these news stories about "inflation" and "internationalisation" and all these terms....

And I'm just like *scratches head* so yeah, the economy is not looking too good at the moment... but what is the current sitch?

Anyone care to write a small 'martian alien' style summary?

[Mark]

-Takes a stabbing guess.

At the moment well you have seen the housing market.. Its mad prices, but recently it has slowed down and fears or a recession. Which would be good for us youngsters But not so good for the oldies. BUT after the last recession housing like tripled in price. So basically buy a house now xoxox :biggrin:

[fjp999]

I think every market is very different. My friend lives in New Jersey very near New York City and her house prices continue to rise.

I live in a very small town with no jobs and no future. In my neighborhood there are many homes with sale signs up and no one is buying. Some of these signs have been up for years. The houses are really tiny have small yards and you have to travel a lot to get anywhere interesting.

We were taking care of an elderly ladies home. She just died and I was offered the house at a very nice price. It is my first house so I am pretty excited.

That is what is happening around my area.

[Dan1089]

European markets are not my forte but here's what I gather.The UK is experiencing a shortage of housing because the goverment didn't project that certain factors would come into play.Things like divorces,buy to let,single people,im migrants have increased demand.The UK has low interest rates so the lower-income group can afford houses but that changed due to to the subprime crisis,now people are stuck with mortgages they can't afford.

[Dan1089]

Are you sure you heard "intenationalisation" or nationalisation?Northern Rock was the victim of the sub-prime crisis and thus Gordon Brown decided to nationalise it (transfer a private company into state ownership).If I was you,I'd stay clear of buying right now Twazzle.Wait for the situation to stabilise,and I don't think there's recession on the cards!Unlike the US,the situation was identified early.Its the Canadians that I'm sceptical about.

[newc_student_18]

I don't think there's recession on the cards!Unlike the US,the situation was identified early.Its the Canadians that I'm sceptical about.

My economics lecturer said this morning that he thinks a recession is on the way....oh joy lol

[Dan1089]

Then I obviously underestimated the situation but I do think you guys have the advantage of a strong currency so even if by any chance,a recession occurs,economic activity will by slightly slowed down.But then again European economies aren't my field so these are just guesses.If the situation gets out of hand,the Queen can hawk out that crown!

[wouldlikemuscle]

From what I understand on the housing side of things...

we are due for some falls in house prices. People simply can't afford to buy places, especially first time buyers. Those that are getting mortgages are risking going into negative equity... ie, their mortgage is worth more than the house.

Wait a while longer before buying. House prices WILL drop, in how long... no one knows.

And there may be some (the rich folk who can afford to) who will buy up multiple houses and just wait for prices to rise again and make some huge profits on their sale.

[Mark]

My economics lecturer said this morning that he thinks a recession is on the way....oh joy lol

Aha same here!

The thing with the US is, (Again from lectures), The UK is very very close to the US, and like any knocks they have we get, their recessions has had a knockback on the uk. Over here at the moment EVERYTHING is inflating. From the cost of petrol, to gas, to electric, to bread! This is shaping pretty bad. There are a shortage of jobs in most areas, and basically I witnessed in cardiff for instance, streets which sell instantly, have dropped their house prices by £10-£20k and this is happening all over?

Maybe yes hold out, BUT, the thing with that is those which buy it which want a mortgage, if you wait chances are things will get worse, and trying to obtain a mortgage will be ALOT harder, so chances are want a house, got a deposit? Buy now and get a decent mortgage. But yehh!

The uk's economical state isnt great at all.

[Star Twister]

I heard on the radio that Mortgage lenders have cut lending money by 50% as compared to this time last year

If you go to http://www.upmystreet.com/ it can give you the valuation of your house and stats compared for the last (god knows how many) years......


I think our has gone done about £5K in the last couple of months