Could you explain that graph? It makes no sense to me. It shows the average price of a house in 1980 was £125k.RE: "I think people are now just full of doom and gloom about the property market and are mad at themselves for not seeing it coming!!! We all have a part to play in getting out of this mess and the best way is to remain positve and continue spending the pennies or cents!! House prices will stop dropping once the banks start lending and that will come around quicker than you think. "
Having seen the graph on this page I would beg to disagree. I think prices still have a long way to go before they reach their natural equilibrium.
I understand that people see house prices falling, but the idea that sellers have to drop their prices doesn't really make sense. I'd imagine most will just take their house off the market. You have to live somewhere!
In the past someone would buy a property to get on the ladder. After a few years most people's job position would improve and they have some equity for a deposit to trade up. Now those people are in negative equity and can't trade up so those house's further up the ladder are now not selling.
So is the market not in a complete jam? People don't want apartments because they can't sell them on to trade up and people selling houses that families would trade up to just take their house off the market because the prices has plummted and they reckon that sooner or later it will pick up again.