People say it’s all negative talk, but it’s reality. House prices are too high, first time buyers are out of the market, the plug is conituining to be pulled from the housing market.

It is quite clear what is happening in the housing market. Prices nearly trebled from 1997-2007; there is a correction taking place and the bottom will not be reached for some time yet.

If news reports filter to the media that there are ‘grass shots’ then these will inevitably come from those with vested interest in property and property gaining in value. As a buyer I would recommend that you wait at least another 6 months before you buy and even then you will still see a drop in house prices for another year or so. We have yet to see the market bottom out and remain flat, then will be the best time to buy.

It is greatly predicted that house prices will continue to fall well into 2010, a further 10% than figures of present. There is not be any kind of recovery until 2012.

The Council of Mortgages Lenders recently released figures showing a nearly a 50% drop in mortgage approvals at the beginning of this year compared to last year. This goes inline with decreasing mortgage options, rising umeployment, more repossessions, more bankruptcy etc, etc. First time buyers are drying up at the bottom of the property ladder and the chain above them is weakening. Yes, Halifax did their best to stimulate interest in the property market by recentl releasing headlines that houses are now affordable more than ever, “Housing affordablility has trebled since prices began falling 18 months ago”. But are the Halifax just staing the obvious?

If house prices have fallen, then why would they not become more affordable? Would it also be correct to state that house prices will be even more affordable in 18 months time?

Whatever the future holds, it would seem that house prices are due to fall even further to go inline with demand and affordability. Banks are more regulated now days and there are very few lenders out there which offer silly rates of 10 x your salary borrowing, we are now looking towards more sensible lending rates of 4 x salary borrowing…. obviously house prices must accustomize themselves to this fact.

Estate agents will no doubt yell from the roof tops on the slightest hint of positive news from the housing market, but my suggestions is to take your time and compare. What is on the market today is very much likely to be what is on the market still next month and even cheaper!

I am seeing increasing cases of Swine Flu globally including a rising number of cases in th UK. Will this lead to further down falls in the economy should the out break worsen? If everyday fears aren’t enough, the public are cautious to walk their very own streets breathing the free outside air without the concern of catching a life threatening disease.

In the UK the is no doubt a weakening confidence in the property market and despite those trying to claw on to varied notions that there are grass shots appearing, then general slide is down for average property prices. Will the added effect of a worsening virus entitled ‘Swine Flu’ add to the nations misery and lack of confidence?

Watch this space should the outbreak of Swine Flu worsen globally, there will be effect on worldwide markets and property prices….

Prices were allowed to spiral upwards at too faster rate on the back of nothing, but a ‘feel good factor’ under the Labour government. People were spending credit as opposed to their earnings. Each year increasing their mortgages to accommodate their new upgrades on cars, multiple annual family holidays and plasma televisions in every room. These kind of people added to the national debt and now find themselves in negative equity (rightly so?) and are now starting to loose their treasured possessions (which they never really owned or worked for?) and the worst case scenario is many situations, repossession of their property.

Yes, many people will feel sorry for the ones losing their homes, but just how many of these people are actually in this situation for genuine reasons? How many of them simply spent, spent, spent with absolutely no regard for future finacial situations?

People tag them as vultures, but these people that are now buying up cheap property from auctions and taking advantage of giveaway prices of cars etc because other people are trying to stay afloat should be looked up to and thanked for having been safer with their spending. Families that studied their monthly bills, never were tempted to take advantage of their limitless credit spending, that may even have rented foreseeing this property price crash, are the ones that will profit.

I think that over the next 2-3 years house prices will adjust to or maybe even below the inflation band. At present it will be those with cash that are king and those that borrowed too much that will be poor. This unfortunately is a cycle that has occured many times before and it’s a cycle that will continue in years to come.

Figures realised from Nationwide say that figures how that house prices in th UK have fallen by 14.6% in the past year. The figures also show house prices are down by 1.4% this month, setting once again, a new all-time low for the Nationwide house price index.

The UK average property price now stands at £158,872, that is almost £30,000 less than a year ago! All this points towards all the hype about a UK economy that is heading into recession.

Nationwide’s chief economist Fionnuala Earley stated in a report that these figures should that the UK was heading into recession, which would put further pressure on prices to fall. Fionnuala stated “As the economy weakens further there is likely to be more movement on asking prices as sellers adjust to the prevailing conditions and reassess their own needs. While there will always be a rump of sellers who will need to move in order to accommodate job or family changes there will be others who are affected by economic conditions more acutely. So we should expect a moderation of price expectations on the part of sellers in a weaker economic environment.”

Annual house price growth was running at 9% last September before the credit crunch struck.

Already we are seeing Below Market Value (BMV) being sold at an increasing pace as both private sellers realise the forthcoming turbulant market and foreclosers by banks are sold off to reclaim their capital. The figure looks bleak and is set to continue possibly to the end of 2010 or 2011. By that time we could see house prices having fallen by upto 40%.

EVen in property auction houses today, we are seeing property sold off at upto 50% BMV and investors have been piling in on these bargains. Real estate abroad has not escaped the turmoil as European countries such as Spain, France and Germany are seeing prices falls and bargains becoming more apparent.

Gobe are the silly days of astronomical house prices where people were buying property as if there was no tomorrow. It appears that over a very short space of time, two years, that the general public that buys property are seeing that house prices are far too high and have all but stopped buying up property from estate agents valueing property at market value. If you want to sell your property in this climate you need to attractive prospective buyers by reducing your price.

Hard times ahead? Yes, though relief by lower interest rates may save some, but if you have been banking on that property price increase you saw over the last few years, you may well see that all shrivel up and head you towards negative equity.

Could we see 50% drops in value or more? With more and more property coming onto the market, could we see a free fall in house prices? A free fall in first time buyers and mortgage approvals? How desperate will people be to sell property? I foresee bargains to be had by early 2009 with prices to continue to fall just to 2010 and levelling out until 2012/2014.

The value of money now increases as assetts start to plumett, average house prices falling, oil price falling, stocks falling and suddenly your £/$ suddenly becomes worth more and more…. just how long before it becomes a safe time to buy, as what you buy now could easily be purchasable a year later for 50% less.