Property. Housing Market Crash UK & Europe End Of The Road Or The Edge Of The Cliff?

The short answer is that we are closer to the cliff edge than any sign of a recovery.

The International Monetary Fund (IMF) has issued a report outlining the continuing downturn.

With unemployment rising fast, job losses and insecurity is now in all sectors, both public and private. Britain is officially back in recession. It could be argued, we never came out of the last one. Spain Ireland and the Greek housing markets are also basket cases.

Fewer people are taking on or are even qualifying for the massive debt, that buying a house brings.

As seen by the lower mortgage approvals and acceptance of the last few months.

Many people, even though they have been approved for a mortgage, are deciding that this is not the right time, to get into financial trouble, as this is what mortgage debt now represents.

Gone are the days when getting a mortgage was a ticket to riches.

Many are waiting to see when the housing market crashes again, and by how much.

If you have a 30% deposit and you are prepared to lose it over the next 5 years, then it may not be a bad move to be buying just now.

If however you intend to stay in the house, you want to buy for the next 20 years, you may break even. Not a very positive set of choices.

Just when it looked like things were improving in the last quarter of 2011

Another housing market crash came barreling in, on top of the one we already had.

It dashed all hopes of a recovery. Fortunately many people did not buy into this false dawn and saved themselves from huge losses.

Although house prices are tumbling in some areas by 33% and more. It is very hard for many people to accept that their house is worth so much less than they paid for it.

The longer they hang on to these properties the less they are worth.

The penny is slowly dropping and we are beginning to see massive cuts in house prices some as much as 33% all over the UK.

Where Are All The Buyers?

There are no more sensible buyers, everyone knows that people are stuck in houses that are falling in value.

What few buyers are out there, are offering a fraction of what the houses are worth, as they also expect prices to continue down and don't want to buy a falling asset.

Property Prices UK are no longer the hot topic of dinner parties. Nobody wants to hear about how much money has fallen of their house.

So as more people see what was once their pride and joy, depreciating in value.

What are our politicians doing. Not much is the answer. If anything they are making matters worse.

It is hard to believe that David Cameron is still in office, considering the way he is mishandling the country. Two words. Petrol Crisis?

No Home No Vote

In the UK if you have no address you cannot be on the electoral role; which means technically you can't vote anyway.

What politician is going to waste time on the homeless/vote-less? I'm pretty sure similar rules apply in the USA.

The objective of this article, is to try to balance the hype of the banks and loan companies, that are trying to talk up the real estate market. It is dead but hasn't been buried yet.

Why Are 'We' Paying For The PPI Scandal?

The billions of pounds, that have had to be paid back to people, that were mislead (they call it miss sold ) into buying insurance on loans and credit cards by the banks. Usually secured against their home. Is a scandal that is largely being ignored.

Why is the British public stuck with this multi £ billion bill ?

We didn't sell these policies to the public. What is really going on, and who is charge?

No one it seems. What happened to the Labour opposition?

I don't want you to run away scared because of the subject discussed here but to listen for a couple of minutes.

It might save you a lot of pain and definitely a lot of money.

I will be quite candid and state the facts as I have interpreted them over the last 30 odd years.

I am a teacher of ICT and economics and have lectured occasionally on Economics since 1989'

I have seen UK house prices rise and fall over the last 30 years. They do go up and down and people have short memories.

Thankfully I managed to avoid the downswings on the housing market roller coaster during this 30 year period, by taking my own advice and ignoring what the mass media is/was pushing.

So how did we get to this state of affairs, why are we still in them and what's the solution?

The simple facts are:-

(1) Your house and other peoples houses, are and have been overpriced. But nobody cared as long as they were making money.

(2) People are in denial that their house is worth a fraction of what they paid for it. Psychologically this is disastrous for them as they literally cannot see that they must accept the price they have been offered or continue to watch their house values plummet.

(3) Homeowners don't want to hear it and realtors (estate agents in the UK) and politicians don't want to tell them as they want to talk the market up hoping that some miracle is going to happen. It won't.

(4) The value of the pound or dollar in your pocket has plummeted. See below.

That's it. That's all there is to it. Simple.

The newspapers, politicians, people with a vested interest will be bamboozling you and talking about the very complicated state of the economy; (that you may not understand)

This bank has robbed more than that bank, and the government is going to crack down on these criminals. Meanwhile the public get the bill?

Thats great but the money that the government gets back from these dodgy bankers does not go into your pocket to pay your mortgage off it goes to....The Government.

The next time someone is trying to sell you a house or anything else for that matter; offer them what "you" think it's worth.

The one simple fact underlying the current problem is that. "something is only worth; what someone else is prepared to pay for it" Maybe you should just re-read that bit again.

If you want a simpler explanation, think about this.

If you just bought a brand new (not gold) Rolex watch (no it doesn't matter which model) and turned around and walked out of the shop.

How much do you think you could sell it for? Exactly now your getting it.

In economic terms It means that " when prices are right; markets will clear"

It is that simple but people can't take it in; they want more complex answers and consequently they will continue to suffer losses and pain.

So what is the Pound in your pocket worth today? about £0.40P

When 1960's PM Harold Wilson devalued the pound he went on TV to tell the nation.

There has been a deafening silence in the last 10 years from both Tony Blair and whoever is the UK PM today! O it's David Cameron by the way.

Are you supposed to be here already? Well o.k. then, just checking!

If you answered I'm hacked off. Because I can't get on the housing ladder.

If you still feel the same way after reading this then you have missed the point and need to speak to a professional.

The bat is a $1.05

The ball is $0.05 hence the bat is worth a whole $1.0 more than the ball.

Don't worry if you got this wrong, so did over 50% of graduates. It's intuitive to think that the ball is $0.10.

The moment that we allowed our homes to be made into just another commodity all the rules went out the window.

Housing Market Crash UK...Again. Latest Interesting House Price Facts